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A company product has used more material to produce than the standard amount but takes fewer labor hours. Which of the following statements is correct?   A.The materials variance is favorable and the labor variance is unfavorable.   B.Both the materials and labor variances are unfavorable.   C.The materials variance is unfavorable and the labor variance is favorable.   D.Both the materials and labor variances are favorable.

A company product has used more material to produce than the standard amount but takes fewer labor hours. Which of the following statements is correct?   A.The materials variance is favorable and the labor variance is unfavorable.   B.Both the materials and labor variances are unfavorable.   C.The materials variance is unfavorable and the labor variance is favorable.   D.Both the materials and labor variances are favorable.

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 6EA: Use the information provided to answer the questions. All material purchased was used in production....
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A company product has used more material to produce than the standard amount but takes fewer labor hours. Which of the following statements is correct?

 

A.The materials variance is favorable and the labor variance is unfavorable.

 

B.Both the materials and labor variances are unfavorable.

 

C.The materials variance is unfavorable and the labor variance is favorable.

 

D.Both the materials and labor variances are favorable.

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