1)Lubrizol is a large chemical company that specializes in producing lubricants. Lubrizol was acquired in 2011 for $9 billion by investment holding company Berkshire Hathaway. Lubrizol may be classified as a(n) A. cost center. B. investment center. C. profit center. D. revenue center.

2)

Chemical Supply Incorporated budgeted two and one half hours of direct labor per unit at $11.75 per hour to produce 650 units of product. The 650 units were completed using 1,750 hours of direct labor at $12.50 per hour. What is the direct labor rate variance?

A.

$1,219 favorable

B.

$1,313 favorable

C.

$1,313 unfavorable

D.

$1,219 unfavorable

3)

The ________ tells managers how much of the overall variance is due to paying a higher or lower price than expected for the quantity of materials it

purchased.

A.

overhead flexible budget variance

B.

quantity variance

C.

price variance

D.

production volume variance