3.33 A company's production department was experiencing a high defect rate on the assembly line, which was slowing down production and causing wastaga ei valuable direct materials. The production manager decided to purchase a higher grade of materials that would be more reliable, but he was worried that the cost of the new materials might negatively affect operating income. Using the new materials would produce an) unfavorable direct materials cost variance untavorable direct materials ethiciency variance favorable direct labor cost variance favorable direct labor efficiency variance Question 15 The quantity variance measures how quiddy direct materials are processed into finished goods the change in quantities used over time O how well the business uses its materials or human resources compared to standards the difference between the quantity used by the company and the quantity used by its competitors Question 16