Brunel Ltd employed cheaper quality materials in its production process than originally planned. At the end of the budget period, the business reporte 1. An unfavourable direct materials usage variance 2. An unfavourable direct materials price variance 3. An unfavourable direct labour efficiency variance 4. A favourable sales price variance Which TWO of the above may be explained by the use of cheaper quality materials?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Brunel
Ltd employed cheaper quality materials in its production process than originally planned. At the end of the budget period, the business reported:
1. An unfavourable direct materials usage variance
2. An unfavourable direct materials price variance
3. An unfavourable direct labour efficiency variance
4. A favourable sales price variance
Which TWO of the above may be explained by the use of cheaper quality materials?
OA. 1 and 2
OB. 2 and 4
OC. 3 and 4
OD. 1 and 3
C...
Transcribed Image Text:Brunel Ltd employed cheaper quality materials in its production process than originally planned. At the end of the budget period, the business reported: 1. An unfavourable direct materials usage variance 2. An unfavourable direct materials price variance 3. An unfavourable direct labour efficiency variance 4. A favourable sales price variance Which TWO of the above may be explained by the use of cheaper quality materials? OA. 1 and 2 OB. 2 and 4 OC. 3 and 4 OD. 1 and 3 C...
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