A company manufactures its products in a highly automated, just-in-time environment and uses a standard cost system. The variance that would cause...
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A company manufactures its products in a highly automated, just-in-time

environment and uses a standard cost system. The variance that would cause the most concern would be a

-

-A.
-6% unfavorable labor efficiency variance caused by the hiring of lower-skilled part-time workers.
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-B.
-10% unfavorable fixed overhead spending variance caused by an unanticipated raise given to production supervisors.
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-C.
-7% unfavorable variable overhead spending variance caused by the part-time workers using more supplies than predicted.
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-D.
-5% unfavorable material quantity variance caused by low-quality materials that resulted in reworks.

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