E$4$ Q$18$ Requirement $2.$ Does the pattern of variances suggest that the$$ company's managers have been making$$ trade$-$offs? Explain.

The

$$ favorable$/$ unfavorable

direct materials price variance combined with the

avorable$/$ unfavorable

direct materials quantity variance suggests that managers may have used

$$ higher$/$ lower quality

materials.

favorable$/$ unfavorable

$.$

Part $6$

The

$$favorable$/$ unfavorable

direct labor rate variance combined with the

$$ favorable$/$ unfavorable

direct labor efficiency variance suggests that managers may have used

$$ lower$/$ higher paid

workers who performed lessless efficiently. The net effect is

$$ favorable$/$ unfavorable

$.$