Lamar Corporation's purchasing manager obtained a special price on an aluminum alloy from a new...
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Lamar Corporation's purchasing manager obtained a special price on an aluminum alloy from a new supplier, resulting in a direct-material price variance of $10,700F. The alloy produced more waste than normal, as evidenced by a direct-material quantity variance of $3,500U, and was also difficult to use. This slowed worker efficiency, generating a $4,000U labor efficiency variance. To help remedy the situation, the production manager used senior line employees, which gave rise to a $1,300U labor rate variance. If overall product quality did not suffer, what variance amount is best used in judging the appropriateness of the purchasing manager's decision to acquire substandard material?
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