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Lucie Corporation's Purchasing Manager Obtained a Special Price on an Aluminum

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Lucie Corporation's purchasing manager obtained a special price on an aluminum alloy from a new supplier, resulting in a direct-material price variance of $9,500F. The alloy produced more waste than normal, as evidenced by a direct-material quantity variance of $2,000U, and was also difficult to use. This slowed worker efficiency, generating a $2,500U labor efficiency variance. To help remedy the situation, the production manager used senior line employees, which gave rise to a $900U labor rate variance. If overall product quality did not suffer, what variance amount is best used in judging the appropriateness of the purchasing manager's decision to acquire substandard material?

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Definitions:

Opposite Sex

Refers to the gender or sex that is different from one's own.

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Case Study Method

A research strategy that involves the in-depth study of a single individual or group to explore complex issues, patterns, and characteristics.

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The physical, cognitive, emotional, and social changes that occur from birth until the end of adolescence, as the individual progresses from dependency to increasing autonomy.

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