2) The Flexible budget for the month of August was for 9,000 units with direct material at $15 per unit...

1. Select the correct statement from the following An extremely favorable variance is not necessarily a good variance. There is a movement in practice toward reporting variances less often than in the past c Only unfavorable variances need to be investigated. d. For proper performance evaluation to be made, responsibility for variances should not be traced to specific managers. The flexible budget for the month of August was for 9,000 units with direct material at $15 per unit. Direct labor was budgeted at 45 minutes per unit for a total of $81,000. Actual output for the month was 8,500 units with $127,500 in direct material and $77,775 in direct labor expense. Direct labor hours of 6,375 were actually worked during the month. Variance analysis would show a. a favorable direct labor efficiency variance of $1,275. 2. an unfavorable direct labor efficiency variance of $1,275 an unfavorable direct labor rate variance of $1,275. 775 7 Dav d. none of the above. 2272, 75 7775 (.15) (637 S8,331.2S Labor Rate Variance Labor Efficiency Variance 5.22 S 22/6G4 Total Labor Variance Standard cost systems should be used fo all of the following reasons except a.) motivation decision-making c) establishing blame clerical efficiency. This month R Company planned to produce 3,000 units of its product. The standard cost card calls for six pounds of material at $.30 per pound. Actual production for the month was 3,100 units, resulting in a favorable price variance of $380 and an unfavorable quantity variance of 120. Based on these variances, one could conclude that: on were used