Answer the following questions using the information below: berman's camera shop has prepared the following flexible budget for september and is in the process of interpreting the variances. f denotes a favorable variance and u denotes an unfavorable variance. flexible variances budget price efficiency material a $40,000 $1,000f $3,000u material b 60,000 500u 1,500f direct labor 80,000 500u 2,500f the most likely explanation of the above variances for material a is that:

The variances for Materials A can indicate that the business purchases a lower quality materials, therefore cheaper.

Explanation:

The variances for Materials A can indicate that the business purchases a lower quality materials, therefore cheaper.

Which produce a favorable price variance because, this lower quality had a lower price per unit of material.

This lower quality makes the manufacturing process use more materials, generating an unfavorable quantity variance as, the the standard materials would use less quantity.

a is the correct answer, tell me if im right

engine assembler, survey reasearcher, auditor