What would be the most likely cause of a favourable material price variance together with an unfavourable material quantity variance?
A) The purchase and use of lower than standard quality of material
B) A labour efficiency problem
C) The purchase and use of higher than standard quality of material
D) Machine efficiency problem

Question

Quizplus · Accepted Answer

The purchase and use of lower than standard quality of material would likely result in a favorable price variance because the materials were cheaper than expected. However, this could also lead to an unfavorable quantity variance because more material may be needed to meet production standards due to the lower quality.

What Would Be the Most Likely Cause of a Favourable