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If the materials price variance is favorable but the materials quantity variance is unfavorable, what might this indicate? What effect, if any, would you expect poor quality materials to have on direct labor variances? Why? Is it correct to consider favorable variances as always being desirable? Explain. What do you think is a criticism of standard costing in today’s advanced manufacturing environment? Who do think is generally responsible for the materials price variance? The materials quantity variance? The labor efficiency variance?
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If the materials price variance is favorable but the materials quantity variance is unfavorable, wha...
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