Viatix Introduced a New Automated Production Process That Has Reduced

Viatix introduced a new automated production process that has reduced the amount of labour needed, but not affected the use of materials. The standard cost system has not been changed yet to reflect this new process. Assuming the machinery is functioning properly and that workers were properly trained in its use, which of the following variances is most likely to result?

A) Favourable direct materials efficiency variance
B) Favourable direct labour efficiency variance
C) Unfavourable direct labour efficiency variance
D) Favourable direct materials price variance

Correct Answer:

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