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Blair Industries uses a standard cost system and has calculated the following variances for May: Direct Materials Price Variance $20,000 Favorable Direct Materials Usage Variance
Blair Industries uses a standard cost system and has calculated the following variances for May: Direct Materials Price Variance $20,000 Favorable Direct Materials Usage Variance $40,000 Unfavorable Direct Labor Efficiency Variance $20,000 Unfavorable Which of the statements below BEST explains the possible performance tradeoffs that could have occurred? Multiple Choice Higher priced materials were more difficult to work with resulting in less efficient use of direct materials. Cheap direct materials resulted in more waste causing inefficient usage of direct materials. Higher priced materials were easier to work with resulting in more efficient use of direct
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