Question
Which of the following could possibly explain both an unfavorable direct materials quantity variance and a favorable direct materials price variance occurring during the same
Which of the following could possibly explain both an unfavorable direct materials quantity variance and a favorable direct materials price variance occurring during the same period?
a. The purchase of lower-quality direct materials
b. The use of inexperienced direct laborers
c. The purchase of higher-quality direct materials
d. A machine being out of alignment
Which of the following situations would normally not indicate that a standard cost should be revised?
a. A change in labor-rates as a result of a new labor union contract.
b. A change in technology or basic production methods
c. A past history of unfavorable variances
d. An increase in the price of a raw material due to a world-wide shortage.
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