Question
Justin Co. recently purchased materials from a new supplier at a very attractive price. The materials were found to be of poor quality, and the
Justin Co. recently purchased materials from a new supplier at a very attractive price. The materials were found to be of poor quality, and the company's laborers struggled significantly as they shaped the materials into finished product. In a desperation move to make up for some of the time lost, the manufacturing supervisor brought in more-senior employees from another part of the plant. Which of the following variances would have a high probability of arising from this situation?
a. b.
c. d.
e. All of these.
Question 7 options:
Both Material Price variance, favorable and Labor rate variance, favorable | |
Material price variance, unfavorable. | |
Labor rate variance, unfavorable. | |
Material quantity variance, favorable. | |
Labor efficiency variance, favorable. |
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