Al's Boxes manufactures corrugated boxes. The standard materials allowed for each box is $0\mathrm{.}5$ kilograms of paper, which has a standard cost of $$5\mathrm{.}40$ per kilogram. During April, $10,000$ kilograms were used to manufacturing $19,500$ boxes. The actual materials cost was $$5\mathrm{.}25$ per kilogram.

What is the rate variance?

Answer $1$ Question $3$

What is the efficiency variance?

Answer $2$ Question $3$

INDEPENDENT QUESTION FROM INFORMATION PROVIDED ABOVE

What would be a possible reason$($s$)$ for the positive materials rate variance?

A Higher demand for the raw materials

B Lower demand for the raw materials

C Strike at one of the supplier's factories

D Lower quality materials

Answer $3$ Question $3$

INDEPENDENT QUESTION FROM INFORMATION PROVIDED ABOVE

What would be a possible reason$($s$)$ for the positive materials efficiency variance?

A Higher demand for the raw materials

B Lower demand for the raw materials

C Lower quality materials

D Lower quality materials