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Miller Company Has an Unfavourable Materials Price Variance

Question 21

Multiple Choice

Miller Company has an unfavourable materials price variance.Which of the following would be the least likely reason for this variance?


A) The company purchased a higher quality material than was budgeted.
B) The company did not take advantage of purchase discounts.
C) The company used more material than was budgeted for in each unit.
D) The company underbudgeted the standard price for materials.

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