Question

Raw materials purchased had a lower price than the standard price. The materials were found to be of inferior quality. Accordingly, each unit of product consumed more materials than the amount that should have been used. Direct labor workers ended up taking longer to complete products because the inferior materials got jammed in the machinery, and slowed down machinery. Which of the following is likely to be the result of buying these inferior materials?

Group of answer choices

An unfavorable direct labor efficiency variance

A favorable direct materials price variance

An unfavorable direct materials quantity variance

All variances shown here

Answer 1

Answer- The following is likely to be the result of buying these inferior materials= All variances shown here.

Explanation- Due to buying inferior materials the following variances are as under-

1)- An unfavorable direct labor efficiency variance are occurred due to labor workers taking more time to complete product because of inferior materials got jammed in the machinery.

2)- A favorable direct materials price variance are occurred due to raw materials purchased had a lower price than a standard price.

3)- An unfavorable direct materials quantity variance are occurred because each unit of product more materials than the amount that should have been used.