Question 3 Scenario: The materials purchasing manager gets a special reduced price on raw materials by purchasing a train carload. A warehouse had to be rented to accommodate the unusually large amount of raw material. (Both the reduced price and rent expense were unaccounted for in the budget.)

Indicate which of the following standard cost variances would be affected. More than one variance may be affected.

A) Materials price variance.

B) Materials quantity variance.

C) Labor rate variance.

D) Labor efficiency variance.

E) Variable overhead spending (rate) variance.

F) Variable overhead efficiency variance.

G) Fixed overhead budget variance.