What might cause combo of variances

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Reference no: EM132632518

Question 1: A strategic change was made in the hiring of personnel at a company. Subsequently, the direct labor rate variance for the company is $150 unfavorable, but the direct labor efficiency variance is $60 favorable. What might cause this combo of variances?

A. Early retirement packages were offered to older, highly paid workers.

B. The company hired better trained, more skilled workers, but paid them a higher hourly wage.

C. The company began an internship program for college students with no experience.

D. The company switched to leasing temporary workers instead of using permanent workers

Question 2: A fixed income portfolio manager has just received an exclusive forecast calling for a significant decline in inflation. The most appropriate action for the portfolio manager to take in response to the forecasted decline in inflation is to

A. Shorten the maturity of the portfolio

B. Lengthen the maturity of the portfolio

C. Move a greater portion of the portfolio into money market instruments

D. Rebalance the portfolio with convertible securities

Reference no: EM132632518

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