Ethics (2) - Do we have to talk about all of those variances? Reese knew he had made a mistake, but he didn't realize how big his makes was. Reese was looking over the production reports for the past quarter. He had authorized a purchase of materials that seemed like a good deal - the cost was 40% less than the amount charged by the regular vendor - but the materials had been low quality. There had been a lot of waste. The reports showed a significant unfavorable direct materials cost variance, but it was offset by the just-as-significant favorable direct material cost variance. Reese had learned a valuable lesson. He would take more time to check out new vendors and not make the same mistake again. The current problem however, was the reports. Reese was scheduled to meet with his manager. He decided the best course of action would be to not discuss the cost and efficiency variances for direct materials, but just focus on the total variance. Reese knew his manager was busy and may never read the detailed reports and find out about the mistake if he didn't bring it to his manager's attention. Should Reese report the cost and efficiency variance? What would you do