15. Which of the following statements is INCORRECT regarding Master Budget? a. Master budget is focusing specific volume of business activity that is expected. b. Master budget is one type of operational budget. c. Master budget starts from preparing sales budget. d. Budgeted balance sheet should be prepared before budgeted income statement. Question 16 and 17: Olivia H manufactures shirts. During June, the company made 1,400 shirts and gathered the following data. Direct materials cost standard Direct materials efficiency standard Actual amount of fabric purchased and used Actual cost of fabric purchased and used Direct labor cost standard Direct labor efficiency standard Actual amount of direct labor hours Actual cost of direct labor $8.00 per yard of fabric 2.10 yards per shirt 2,840 yards 523.288 $17.00 per DLH 3.00 DLHr per shirt 4.340 DLHO $72,261 16. Calculate direct materials cost variance and direct material efficiency variance. a. Direct Materials Cost Variance is $458 U, and Direct Materials Efficiency Variance is $1200 F b. Direct Materials Cost Variance is $458 F, and Direct Materials Emiciency Variance is $1200 U c. Direct Materials Cost Variance is $568 U, and Direct Materials Efficiency Variance is $800 F d. Direct Materials Cost Variance is $568 F, and Direct Materials Efficiency Variance is $800 U 17. Calculate direct labor cost variance and direct labor efficiency variance. a. Direct Labor Cost Variance is $1,519 F. and Direct Labor Efficiency Variance is 2,380 U b. Direct Labor Cost Variance is $1,619 F, and Direct Labor Efficiency Variance is 2.480 U c. Direct Labor Cost Variance is $1,519 U, and Direct Labor Efficiency Variance is 2,380 F d. Direct Labor Cost Variance is $1,619 U, and Direct Labor Efficiency Variance is 2.480 F 18. Which of the following statements is INCORRECT regarding Flexible Budget? a. Flexible budget is budgeted revenues and expenses for various levels of sales volume. b. Flexible budgets separate variable costs from fixed costs. c. Difference between flexible budget and static budget can be analyzed with Sales Volume Variance. d. Flexible budget is based on expected number of units sold