A union contract agreement calling for an immediate 4 percent increase in production worker wages was signed. No changes were made in the standards. Indicate which of the following standard cost variances would be affected. More than one variance will be affected in some areas.
a. Materials price variance
b. Materials quantity variance
c. Labor rate variance
d. Labor efficiency variance
e. Variable overhead spending variance
f. Variable overhead efficiency variance
g. Fixed overhead budget variance

4 percent Increase in Production Worker Wages

Indication of the standard cost variances affected:

c. Labor rate variance

e. Variable overhead spending variance

Explanation:

An increase in production workers wages as a result of workers' union agreement with management will affect the labor rate variance and the variable overhead spending variance.  Production workers are factory or manufacturing workers.  The expenses incurred on them include the direct labor costs and the indirect labor costs.  Direct labor cost is a function of the rate of pay and hours worked or any other parameter used for paying their wages.  Indirect labor cost is influenced by the wages of indirect labor in the production unit, like factory supervisors.

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.

idk

explanation:

bc why nah