10. A favorable materials price variance variance would MOST likely result from nce coupled with an unfavorable material quantity w A. problems with processing machines B. the purchase of low quality materials. C. problems with labor efficiency D. changes in the product mix 11. The v department manager is ce that is most useful in assessing the performance of the purchasing A. the labor efficiency variance B. the labor rate variance. C. the materials quantity variance D. the materials price variance 12. Which at a company that makes office furniture? A. sheet steel in a file cabinet made by the company B. manufacturing equipment depreciation. C. idle time for direct labor. of the following should NOT be included as part of manufacturing overhead D. taxes on a factory building. 13The following level of 15,000 machine-hours: costs appear in Malgorzata Company's flexible budget at an activity Total Cost $7,800 Indirect materials Factory rent $18,000 What would be the flexible budget amounts at an activity level of 12,000 m if indirect materials is a variable cost and factory rent is a fixed cost? Indirect Materials Factory Rent A. $7,800 B. $7,800 C. $6,240 D. $6,240 $14,400 $18,000 $14,400 $18,000 14. Gandy Company has 5,000 obsolete desk lamps that are carried in inventory at a manufacturing cost of $50,000. If the lamps are reworked for $20,000, they could be sold for $35,000. Alternatively, the lamps could be sold for $8,000 for scrap. In a decision model analyzing these alternatives, the sunk cost would be: A. $8,000 B. $15,000 C. $20,000 D. $50,000