Justin Company 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 labourers 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 low probability of arising from this situation?

Question

Quizplus · Accepted Answer

The fixed overhead volume variance would have a low probability of arising from this situation as it is not directly impacted by the quality of materials or the use of senior employees. This variance reflects whether the actual volume of production differed from the budgeted volume, which would not be significantly affected by these events.

Justin Company Recently Purchased Materials from a New Supplier at a Very