Which of the following statements is true of cost variances and efficiency variances? They pertain to the difference between the static budget and actual results. They pertain to the difference between the flexible budget and actual results. They pertain to the difference between the flexible budget and the static budget. They pertain to the difference between the static budget and the previous year's actual results. The procurement manager was able to bring down the cost of direct materials by purchasing materials of a slightly lower grade quality than the company had used previously. The lower grade o materials, however, meant a higher defect rate on the assembly line, and higher wastage of materials during production, which in turn lowered operating income. This situation would have led to a(n): favorable direct materials cost variance. unfavorable direct labor cost variance. unfavorable direct labor efficiency variance. favorable direct materials efficiency variance