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14 April, 07:53

Justin Co. recently purchased materials from a new supplier at a very attractive price. The materials were found to be of poor quality, and the company's laborers struggled significantly as they shaped the materials into finished product. In a desperation move to make up for some of the time lost, the manufacturing supervisor brought in more-senior employees from another part of the plant. Which of the following variances would have a high probability of arising from this situation?

a. Both Material Price variance, favorable and Labor rate variance, favorable

b. Material price variance, unfavorable.

c. Labor rate variance, unfavorable.

d. Material quantity variance, favorable.

e. Labor efficiency variance, favorable.

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Answers (1)
  1. 14 April, 11:28
    0
    C

    Explanation:

    more labor expense bringing in extras workers. Drives down the profits.
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