Carden Manufacturing decided to purchase raw materials from a new supplier for a cheaper price, but after a couple of months they found that the new materials were of an inferior quality. How would this affect their variance?

Select one:

a. The company would have an unfavorable price variance and a favorable quantity variance

b. They would have a favorable price variance and an unfavorable quantity variance

c. They would have a variance that is unfavorable for both price and quantity

d. They would have a variance that is favorable for both price and quantity.