Comment on the May $2020$ results. Would you continue the$$ "experiment" of using the new$$ material?

A$.$

Efficiencies have improved in the direction indicated by the production managerlong dash$$but$,$ it is unclear whether they are a trend or a$$ one$-$time occurrence. Rugged Life should continue to use the new$$ material, especially in light of its superior quality and$$ feel; but it may want to$$ re$-$examine the standard material price since the new material costs more than the old.

B$.$

Efficiencies have improved in the direction indicated by the production manager. Rugged Life should not continue to use the new$$ material, though, since the overall efficiency variance is still unfavorable.

C$.$

Efficiencies have improved in the direction indicated by the production manager but Rugged Life should not continue to use the new material. Use of the new material would require a change to the standard material price since the new material costs more than the old. Making this change to the cost accounting system is complex and very expensive.

D$.$

Efficiencies have declined although the production manager had indicated they would improve. Although the new material has superior quality and$$ feel, Rugged Life should not continue to use the new material in light of the unfavorable efficiencies.Comment on the May $2020$ results. Would you continue the$$ "experiment" of using the new$$ material?

A$.$

Efficiencies have improved in the direction indicated by the production managerlong dash$$but$,$ it is unclear whether they are a trend or a$$ one$-$time occurrence. Rugged Life should continue to use the new$$ material, especially in light of its superior quality and$$ feel; but it may want to$$ re$-$examine the standard material price since the new material costs more than the old.

B$.$

Efficiencies have improved in the direction indicated by the production manager. Rugged Life should not continue to use the new$$ material, though, since the overall efficiency variance is still unfavorable.

C$.$

Efficiencies have improved in the direction indicated by the production manager but Rugged Life should not continue to use the new material. Use of the new material would require a change to the standard material price since the new material costs more than the old. Making this change to the cost accounting system is complex and very expensive.

D$.$

Efficiencies have declined although the production manager had indicated they would improve. Although the new material has superior quality and$$ feel, Rugged Life should not continue to use the new material in light of the unfavorable efficiencies.Comment on the May $2020$ results. Would you continue the$$ "experiment" of using the new$$ material?

A$.$

Efficiencies have improved in the direction indicated by the production managerlong dash$$but$,$ it is unclear whether they are a trend or a$$ one$-$time occurrence. Rugged Life should continue to use the new$$ material, especially in light of its superior quality and$$ feel; but it may want to$$ re$-$examine the standard material price since the new material costs more than the old.

B$.$

Efficiencies have improved in the direction indicated by the production manager. Rugged Life should not continue to use the new$$ material, though, since the overall efficiency variance is still unfavorable.

C$.$

Efficiencies have improved in the direction indicated by the production manager but Rugged Life should not continue to use the new material. Use of the new material would require a change to the standard material price since the new material costs more than the old. Making this change to the cost accounting system is complex and very expensive.

D$.$

Efficiencies have declined although the production manager had indicated they would improve. Although the new material has superior quality and$$ feel, Rugged Life should not continue to use the new material in light of the unfavorable efficiencies.