The Production Manager of a Company Was Experiencing a High

Multiple Choice

The production manager of a company was experiencing a high defect rate on the assembly line, which was slowing production and causing wastage of valuable materials. He decided to purchase a higher grade of material that would be more reliable, but he was worried that the cost of the new material might negatively affect operating income. This situation would have produced a(n) :

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