Listed below are five variances (and possible causes) that are under review by management of Knight Company. Which of the following is least likely to cause the variance indicated?
A) The need to ship goods acquired from a distant supplier via overnight carrier than via common carrier truck; material price variance.
B) The need to complete goods on a timely basis during a period of high absenteeism; labor rate variance.
C) A work-team that is very unhappy with its supervisor; labor efficiency variance.
D) The need to close a plant for two days because of blizzard conditions; material quantity variance, part no. 542.
E) A malfunctioning piece of manufacturing equipment; labor efficiency variance.

Question

Quizplus · Accepted Answer

The need to close a plant for two days due to blizzard conditions would more likely cause a variance in production volume or labor efficiency rather than a material quantity variance for a specific part. Material quantity variances typically relate to the amount of material used in production, not the inability to produce due to external factors like weather.

Listed Below Are Five Variances (And Possible Causes) That Are