A company's production department was experiencing a high defect rate on the assembly line,which was slowing down production and causing a higher waste of valuable direct materials.The production manager decided to purchase a higher grade of materials that would be more reliable.This would produce a(n)________.
A) unfavorable direct materials cost variance
B) favorable direct labor cost variance
C) favorable direct labor efficiency variance
D) unfavorable direct materials efficiency variance

Question

Quizplus · Accepted Answer

Purchasing a higher grade of materials typically results in higher costs, leading to an unfavorable direct materials cost variance because the company is spending more on materials than originally planned or budgeted.

A Company's Production Department Was Experiencing a High Defect Rate