12) 12) A favorable labor rate variance is created when: A) actual units produced exceed standard hours allowed B) actual wages paid are lss than amounts that should have been paid for the number of hours worked C) actual units produced exceed budgeted production levels D) actual labor hours worked exceed standard hours allowed. E) actual hours worked are less than standard hours allowed 13) Perez Inc recently completed 56,000 units of a product that was expected to consume 13) four pounds of direct material per finished unit. The standard price of the direct material was S8.50 per pound. If the firm purchased and consumed 228,000 pounds in manufacturing (cost $1,881,000), the direct-material quantity variance would be figured as A) S34,000U B) S57,00OF C) S34,000F D) S57,000U E) None of the answers is correct 14) What practice best describes when divisional managers throughout an organization 14) work together to achieve the organization's goals? A) Centralization of objectives. B) Goal attainment. C) Goal congruence. D) Participatory management. E) Negotiation by subordinates. 15) Macon Corporation has no excess capacity. If the firm desires to implement the general 15) transfer-pricing rule, opportunity cost would be equal to: A) the direct expenses incurred in producing the goods. B) the summation of variable cost plus fixed cost. C) the contribution margin forgone from the lost external sale. D) zero. B) the total difference in the cost of production between two divisions