Which of the following could possibly explain an unfavorable direct materials efficiency variance and a favorable direct materials price variance occurring during the same period?
A) The purchase of higher-quality direct materials
B) The use of inexperienced direct laborers
C) The purchase of lower-quality direct materials
D) A machine being out of alignment

Question

Quizplus · Accepted Answer

The purchase of lower-quality direct materials can lead to a favorable price variance because the materials are cheaper, but it can also cause an unfavorable efficiency variance due to increased waste or defects.

Which of the Following Could Possibly Explain an Unfavorable Direct