1) The materials purchase price variance is a. b. the difference between the actual cost of materials purchased and the standard cost of ma the difference between the act ual cost of materials purchased and the standard cost of materials used. c. primarily the responsibility of the production manager d. both a and c. ) A favorable labor price variance indicates that a. actual hours exceed standard hours b. standard hours exceed actual hours. c. the actual rate exceeds the standard rate. d. the standard rate exceeds the actual rate. 2 Given the following information: Standard direct labor rate Actual direct labor rate Standard direct labor hours Direct labor efficiency variance $3.75 3.50 10,000 $4,200 U What were the actual hours worked? a. 10,714 b. 11,120 c. 11,200 d. 11,914 A favorable PVV means that actual production a. equal budgeted production b. Are less than budgeted production c. Exceed budgeted production d. Exceed the spending variance e. Are less than the spending variance