An Unfavourable Direct Materials Efficiency Variance and a Favourable Direct

question 252

Multiple Choice

An unfavourable direct materials efficiency variance and a favourable direct materials price variance might indicate which of the following?

• A) Less expensive, inferior materials requiring more than the standard amount were used in production
• B) Less expensive, inferior materials requiring less than the standard amount were used in production
• C) More expensive, superior materials requiring more than the standard amount were used in production
• D) More expensive, superior materials requiring less than the standard amount were used in production