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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.

User HackerGil
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1 Answer

4 votes

Answer:

C

Step-by-step explanation:

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

User Shreyash Mahajan
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8.5k points
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