Which variances would have a high probability of arising

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Razon Company recently purchased materials from a new supplier at a very attractive price. The materials were found to be of poor quality, and the company's laborers struggled significantly as they shaped the materials into finished product.

Problem 1: In a desperation move to make up for some of the time lost, the manufacturing supervisor brought in more-senior employees from another part of the plant. Which of the following variances would have a high probability of arising from this situation?

Option 1: All of the answers are correct.

Option 2: Material price variance, favorable.

Option 3: All of the answers are wrong.

Option 4: Labor rate variance, unfavorable.

Option 5: Material quantity variance, unfavorable.

Reference no: EM132753309

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