eost center varianees Verify the variance ealeulations in Table 20.2. Suppose a raw material shortage was present and the eost center was foreed to use materials of lower quality, but at a lower price. This also resulted in excessive direet labor. Assume 90% of the labor quantity varianee is due to this lower quality direet material. Prepare an altemate variance presentation that isolates the diffieulties eaused by the raw material shorlage. Should the eost center manager be held responsible for the variances you have isolated?

AppendixLO1