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9. [Answer Only] Handley Manufacturing Company has prepared the following flexible budget for August and is in the process of interpreting the variances. F denotes
9. [Answer Only] Handley Manufacturing Company has prepared the following flexible budget for August and is in the process of interpreting the variances. F denotes a favorable variance and U denotes an unfavorable variance. Material A Material B Direct manufacturing labor Flexible Budget $44,000 66,000 80,000 Variances Price Efficiency $1,000 F $3,400 U 200 U 1,800 F 600 U 2,300 F The least likely explanation of the above variances for Material A is that 1 a lower price than expected was paid for Material A 2 lower-quality raw materials were used than were planned 3 the purchasing manager purchased in larger-than-expected quantities resulting in price discounts 4 more amount of Material A used during production than planned for actual output 5 more higher-skilled workers were scheduled to the production line than planned
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