A favorable materials price variance coupled with an unfavorable material usage variance would MOST likely result from:
A) problems with processing machines.
B) the purchase of low quality materials.
C) problems with labor efficiency.
D) changes in the product mix.

Question

Quizplus · Accepted Answer

A favorable materials price variance indicates that the materials were purchased at a lower price than expected. However, an unfavorable material usage variance indicates that more materials were used than expected. This could be caused by low quality materials that require more of them to be used in the production process.

A Favorable Materials Price Variance Coupled with an Unfavorable Material