Question

The sole supplier of Montrose, Inc.'s critical direct material declared bankruptcy last year. As a result, Montrose had to quickly find alternative sources for the material. Since no one supplier had enough material to meet the company's needs, Montrose had to use twelve different vendors that were located throughout the country. Shipments frequently had to be sent overnight in small quantities. On three occasions, Montrose had to accept materials that were of higher quality than desired in order to meet promised delivery dates.

Required

What will be the likely impact of these circumstances on Montrose’s direct materials price and quantity variances for the year?



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  • CreatedFebruary 21, 2014
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