The materials price and efficiency variances could be an indication that the company purchased ▼
expensive ingredients of
▼
​quality, which resulted in
▼
fewer
more
than the standard number of rejected units. The labor price variance suggests that
▼
less
more
experienced workers may have worked​ more, resuting in a
▼
faster
slower
work pace and a
▼
higher
lower
than normal amount of rejects or waste.
The company should determine the cause of the rejects. The cause could be
▼
faulty materials.
faulty materials, underskilled workers, or a combination of both.
underskilled workers.
Perhaps
▼
additional training
increased wages
more relaxed time standards
regularly scheduled equiment maintenance
will help. If rejects are not the​ problem, employees may be
▼
needed to properly maintain the equipment.
needed to properly schedule the work more efficiently.
needed to renegotiate the terms for materials purchases.
wasting both time and materials.