27: Alpha Company has prepared the following flexible budget for April and is in the process of interpreting the variances. F denotes a favourable variance and U denotes an unfavourable variance.

                                                          Flexible                             Variances          

                                                           Budget                    Price           Efficiency

       Material A                                 $44,000                $1,000F               $3,400U

       Material B                                   66,000                    200U                  1,800F

       Direct manufacturing labour      80,000                     600U                  2,300F

 

The most likely explanation of the above variances for Material A is that ________.

	a.	Material A used during April was $3,400 less than expected
	b.	None of the answers.
	c.	the company used a higher-priced supplier
	d.	a lower price than expected was paid for Material A
	e.	higher-quality raw materials were used than were planned