A Materials Purchasing Manager Recently Generated a Favorable Materials Price

Multiple Choice

A materials purchasing manager recently generated a favorable materials price variance by taking advantage of a "deal" on a batch of substandard quality raw material in "as is" condition. Much of the material was found to be unusable. The manager's behavior likely resulted in:

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