11. What is the primary benefit of a standard costing system (variance analysis)? a. It records costs at what should have been incurred. b. It allows for a comparison of differences between actual and standard costs. c. It is easy to implement. d. It is inexpensive and easy to use. 12. The total material variance can be divided into which of the following components: a. price and quantity b. rate and hours c. spending and efficiency d. price and spending 13. Which of the following statements correctly describes an unfavorable material price variance? a. Too much material was purchased. b. A higher price was paid for material purchased compred with the standard price. c. More material was used than called for by the standard. d. Less material was used than called for by the standard. 14. The labor rate variance is equal to the difference between the actual wage rate and the standard wage rate times the standard number of labor hours worked. a. True b. False 15. What does a favorable labor efficiency variance mean? a. Labor rates were higher than called for by standards. b. Inexperienced labor was used, causing the rate to be lower than standard. c. More labor was used than called for by standards. d. Less labor was used than called for by standards. 16. Standard cost variances provide definitive evidence that costs are "out of control" and mangers are not performing effectively. a. True b. False 17. A favorable variance may be indicative of poor management decisions. a. True b. False