Requirement 7. analyze each variance and speculate as to what may have caused that variance. the ▼ favorable unfavorable dm price variance and ▼ favorable unfavorable dm quantity variance may have been caused by ▼ purchasing inferior raw materials purchasing superior quality raw materials . the ▼ cheaper materials that are of a lesser quality more expensive materials that are of a higher quality cause ▼ less more waste.

Mno corporation uses a job-order costing system with a predetermined overhead rate based on direct labor-hours. the company based its predetermined overhead rate for the current year on the following data: total estimated direct labor-hours 50,000 total estimated fixed manufacturing overhead cost $ 285,000 estimated variable manufacturing overhead per direct labor-hour $ 3.80 recently, job p123 was completed with the following characteristics: total actual direct labor-hours 20 direct materials $ 710 direct labor cost $ 500 the amount of overhead applied to job p123 is closest to: