Question
Raw materials purchased had a lower price than the standard price. The materials were found to be of inferior quality. Accordingly, each unit of product
Raw materials purchased had a lower price than the standard price. The materials were found to be of inferior quality. Accordingly, each unit of product consumed more materials than the amount that should have been used. Direct labor workers ended up taking longer to complete products because the inferior materials got jammed in the machinery, and slowed down machinery. Which of the following is likely to be the result of buying these inferior materials?
Group of answer choices
An unfavorable direct labor efficiency variance
A favorable direct materials price variance
An unfavorable direct materials quantity variance
All variances shown here
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