Choice "B" is correct. The purchase of lower than standard quality material will often result in an unfavorable material usage variance (the inferior material causes more waste) and a favorable material price variance (the inferior material costs less).Choice "d" is incorrect. Machine efficiency problems would not affect the price variance.Choice "c" is incorrect. Product mix changes would affect sales volumes, not material price or production efficiency.Choice "a" is incorrect. Higher than standard material would likely lead to unfavorable price variances and favorable efficiency variances.
