The Procurement Manager Was Able to Bring Down the Cost

Multiple Choice

The procurement manager was able to bring down the cost of direct materials by purchasing materials of a slightly lower grade quality than the company had used previously. The lower grade of materials, however, meant a higher defect rate on the assembly line, and higher wastage of materials during production, which in turn lowered operating income. This situation would have led to a(n) :

A) favorable direct materials cost variance.
B) unfavorable direct labor cost variance.
C) unfavorable direct labor efficiency variance.
D) favorable direct materials efficiency variance.