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DM Price Variance: $11,900U DM Quantity Variance: $15,308F DL Rate Variance: $1,649U EL Efficiency Variance: $9,317F Taking all four direct cost variances into account as

DM Price Variance: $11,900U

DM Quantity Variance: $15,308F

DL Rate Variance: $1,649U

EL Efficiency Variance: $9,317F

Taking all four direct cost variances into account as appropriate, try to decide what a likely cause is. Assume that management investigates and finds your hypothesis to be supported. Make one recommendation to management based on this information.

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