Lamar Corporation's purchasing manager obtained a special price on an aluminum alloy from a new supplier, resulting in a direct-material price variance of BOLD,500F.The alloy produced more waste than normal, as evidenced by a direct-material quantity variance of $2,000U, and was also diﬃcult to use.This slowed worker eﬃciency, generating a $2,500U labor eﬃciency variance. To help remedy the situation, the production manager used senior line employees, which gave rise to a $900U labor rate variance.If overall product quality did not suffer, what variance amount is best used in judging the appropriateness of the purchasing manager's decision to acquire substandard material?

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The Answer of Lamar Corporation's purchasing manager obtained a special price on an aluminum alloy from a new supplier, resulting in a direct-material price variance of BOLD,500F.The alloy produced more waste than normal, as evidenced by a direct-material quantity variance of $2,000U, and was also diﬃcult to use.This slowed worker eﬃciency, generating a $2,500U labor eﬃciency variance. To help remedy the situation, the production manager used senior line employees, which gave rise to a $900U labor rate variance.If overall product quality did not suffer, what variance amount is best used in judging the appropriateness of the purchasing manager's decision to acquire substandard material?

Lamar Corporation's Purchasing Manager Obtained a Special Price on an Aluminum