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The following variances were reported: Material purchase price variance Unfavorable Material quantity variance Favorable Labor rate variance Negligible Labor efficiency variance Favorable Machine hours efficiency
The following variances were reported:
Material purchase price variance Unfavorable
Material quantity variance Favorable
Labor rate variance Negligible
Labor efficiency variance Favorable
Machine hours efficiency Favorable
The sum of the favorable variances above exceeded the unfavorable materials price variance by a considerable amount. The quality of the output from the department was the same as usual. Is there any connection between these variances? If so, explain
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