Islander Corporation Manufactures a Product with the Following Standard Costs$\begin{array}{lr}
\text { Direct materials }(20 \mathrm{~m} @ \$ 1.85 \text { per metre }) & \$ 37.00 \
\text { Direct labour }(4 \text { hours } @ \$ 12.00 \text { per hour }) & 48.00
\end{array}$

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The Answer is <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5092/11ea8943_bb18_0894_a16d_c1de4167e880_TB5092_00.jpg" alt="  B.The favourable purchase price variance may have occurred because the purchasing manager purchased materials at a lower price that were of lesser quality. The workers encountered production problems as a result of the lesser quality materials, which resulted in using more materials and taking more time than anticipated. The supervisor also had to assign more experienced workers to this production, which resulted in a higher average wage rate." class="answers-bank-image d-block" rel="preload" > B.The favourable purchase price variance may have occurred because the purchasing manager purchased materials at a lower price that were of lesser quality. The workers encountered production problems as a result of the lesser quality materials, which resulted in using more materials and taking more time than anticipated. The supervisor also had to assign more experienced workers to this production, which resulted in a higher average wage rate.

Islander Corporation Manufactures a Product with the Following Standard Costs

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