A company product has used more material to produce than the standard amount but takes fewer labor hours. Which of the following statements is correct? A.The materials variance is favorable and the labor variance is unfavorable. B.Both the materials and labor variances are unfavorable. C.The materials variance is unfavorable and the labor variance is favorable. D.Both the materials and labor variances are favorable.
A company product has used more material to produce than the standard amount but takes fewer labor hours. Which of the following statements is correct? A.The materials variance is favorable and the labor variance is unfavorable. B.Both the materials and labor variances are unfavorable. C.The materials variance is unfavorable and the labor variance is favorable. D.Both the materials and labor variances are favorable.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company product has used more material to produce than the standard amount but takes fewer labor hours. Which of the following statements is correct?
A.The materials variance is favorable and the labor variance is unfavorable.
B.Both the materials and labor variances are unfavorable.
C.The materials variance is unfavorable and the labor variance is favorable.
D.Both the materials and labor variances are favorable.
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