An Unexpected Disruption in Rail Service Eliminated a Company's Usual

Multiple Choice

An unexpected disruption in rail service eliminated a company's usual supply of a critical raw material. To avoid a disruption in production, the material needed was obtained from a new vendor with which the company had no prior relationship. This event is likely to have produced:

A) An unfavorable material price variance.
B) A favorable material price variance.
C) An unfavorable material usage variance.
D) A favorable material usage variance.