Handley Manufacturing Company has prepared the following flexible budget for August and is in the process of interpreting the variances. F denotes a favorable variance and U denotes an unfavorable variance.

Flexible Budget

Variances

Price

Efficiency

Material A

$43,000

$1,000F

$3,000U

Material B

68,000

700U

1,700F

Direct manufacturing labor

86,000

200U

2,100F

The most likely explanation of the above variances for Material A is that?________.

Handley Manufacturing Company has prepared the following exible budget for August and is in the process of interpreting the variances. F denotes a favorable variance and U denotes an unfavorable variance. Flexible Variances Budget Price Efciency Material A $43,000 $1 ,000F $3,000U Material B 68.000 700U 1,700F Direct manufacturing labor 86,000 200U 2,100F The most likely explanation of the above variances for Material A is that O A. the company used a higher-priced supplier O B. a lower price than expected was paid for Material A O C. higher-quality raw materials were used than were planned 0 D. Material A used during September was $2,000 less than expected