The Purchasing Agent of an Organization Acquired Some Raw Materials

Multiple Choice

The purchasing agent of an organization acquired some raw materials at a bargain price, even though she knew that their quality was lower than that of the materials customarily used.This action resulted in a favorable raw materials purchase price variance that might very well have been more than offset by:

A) an unfavorable raw materials usage variance.
B) a favorable direct labor efficiency variance.
C) an unfavorable variable overhead spending variance.
D) an unfavorable direct labor rate variance.