Assume a company purchased direct material at less than its normal price but it was of such poor quality that theworkers struggled significantly to make it into the finished product. So to try to make up for some of the time lost, themanufacturing supervisor brought in more senior level workers from another part of the factory. Given these twosituations, which of the following variances would likely occur?Multiple ChoiceAn unfavorable material quantity variance and a favorable material price variance.A favorable material quantity variance and an unfavorable material price variance.A favorable material quantity variance and a favorable labor rate variance.A favorable labor rate variance and an unfavorable labor efficiency variance.A favorable labor efficiency variance and a favorable labor rate variance.

Name: Assume a company purchased direct material at less than its normal pr
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Description: Assume a company purchased direct material at less than its normal price but it was of such poor quality that theworkers struggled significantly to make it into the finished product. So to try to make up for some of the time lost, themanufacturing s

Material Price Variance: Measures the cost difference of purchased materials from the expected…

Business

Accounting

Assume a company purchased direct material at less than its normal price but it was of such poor quality that the workers struggled significantly to make it into the finished product. So to try to make up for some of the time lost, the manufacturing supervisor brought in more senior level workers from another part of the factory. Given these two situations, which of the following variances would likely occur? Multiple Choice O An unfavorable material quantity variance and a favorable material price variance. A favorable material quantity variance and an unfavorable material price variance. A favorable material quantity variance and a favorable labor rate variance. A favorable labor rate variance and an unfavorable labor efficiency variance. A favorable labor efficiency variance and a favorable labor rate variance.

Assume a company purchased direct material at less than its normal price but it was of such poor quality that the workers struggled significantly to make it into the finished product. So to try to make up for some of the time lost, the manufacturing supervisor brought in more senior level workers from another part of the factory. Given these two situations, which of the following variances would likely occur? Multiple Choice O An unfavorable material quantity variance and a favorable material price variance. A favorable material quantity variance and an unfavorable material price variance. A favorable material quantity variance and a favorable labor rate variance. A favorable labor rate variance and an unfavorable labor efficiency variance. A favorable labor efficiency variance and a favorable labor rate variance.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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