The purchasing agent of an organization acquired some raw materials at a bargain price, even though she knew that their quality was lower than that of the materials customarily used. This action resulted in a favorable raw materials purchase price variance that might very well have been more than offset by:

a. an unfavorable raw materials usage variance
b. a favorable direct labor efficiency variance
c. an unfavorable variable overhead spending variance.
d. an unfavorable direct labor rate variance

a. an unfavorable raw materials usage variance.

Explanation:

The letter a is the most appropriate alternative to the above question, since the fact that a purchasing agent managed to acquire raw materials at a bargain price and this action resulted in a favorable variation in the purchase price of raw materials, this same action could be compensated for by an unfavorable variation in the use of raw materials, since the raw materials purchased at a cheaper price, their quality was lower than that of the raw materials commonly used, which could generate quality losses , production and sales.

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