Question

A​ company's production department was experiencing a high defect rate on the assembly​ line, which was slowing down production and causing a higher waste of valuable direct materials. The production manager decided to purchase a higher grade of materials that would be more reliable. This would produce​ a(n) ________.

Answer 1

The correct answer to the following question is Unfavorable direct material cost variance .

Step-by-step explanation:

Unfavorable variance can be defined as an accounting term which describes situations where the actual cost that a company would bear is more than the standard cost. This will alert a management that there will be fall in the expected profit of the company. In the given question , same situation will take place if the production manager decides to buy high grade materials which will cause more cost and thus will lead to decrease in profit.