Requirement 7. analyze each variance and speculate as to what may have caused that variance. the ▼ favorable unfavorable dm price variance and ▼ favorable unfavorable dm quantity variance may have been caused by ▼ purchasing inferior raw materials purchasing superior quality raw materials . the ▼ cheaper materials that are of a lesser quality more expensive materials that are of a higher quality cause ▼ less more waste.

Kinc. has provided the following data for the month of may: inventories: beginning ending work in process $ 17,000 $ 12,000 finished goods $ 46,000 $ 50,000 additional information: direct materials $ 57,000 direct labor cost $ 87,000 manufacturing overhead cost incurred $ 63,000 manufacturing overhead cost applied to work in process $ 61,000 any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. the adjusted cost of goods sold that appears on the income statement for may is: