the materials price and efficiency variances could be an indication that the company purchased less expensive ingredients of lower ​quality, which resulted in more than the standard number of rejected units. the labor price variance suggests that less experienced workers may have worked​ more, resuting in a slower work pace and a higher than normal amount of rejects or waste. part 7 the company should determine the cause of the rejects. the cause could be faulty materials, underskilled workers, or a combination of both. perhaps additional training will help. if rejects are not the​ problem, employees may be wasting both time and materials.