the answer choices for the last question: 1,2, or 3.

Should the plant manager update the materials price standard as suggested? Why or why not? 1. No, The suggestion of the purchasing manager is premature. A favorable materials price can produce an effect on both materials usage and labor variances. 2. Yes, the purchasing manager is correct. This will improve the overall profitability of the company. 3. No, The suggestion of the purchasing manager is incorrect. The matierals are not available ans so changes to the price standard should not be made