Which of the following statements is correct with regard to production variances?

A.

Direct material variances are concerned only with the purchasing functions of a companys manufacturing operations.

B.

The sum of the direct material price and direct material quantity variances always equal the total direct material variance.

C.

The sum of the direct labor rate and the direct labor efficiency variances always equal the total direct labor variance.

D.

The standard quantity allowed is used to determine the direct materials price variance.

E.

Use of laborers with high hourly wage rates for production activities requiring low hourly wages rate laborers would always result in an unfavorable labor efficiency variance.