21) When managers intentionally understate expected revenues or overstate expected expenses in order to have a favorable performance evaluation, it creates: A) Benchmarking B) Appropriation C) Budgetary slacke D] Variance analysis The following data relates to Sea-Date Boots in questions 22-25: Sea-Date's has collected the following data for one of its products: Direct materials standard (3 pounds @ $1/lb.) $3 per unit Actual direct materials used 101,000 pounds Actual direct material cost $80,800 Actual units produced 18,000 units 22) What is Sea-Date's direct materials price variance? A) $26,800 U B] $26,800 F C) $20,200 U D) $20,200 F 23) What is Sea-Date's direct materials usage (efficiency) variance? A) $47,000 U B) $47,000 F c) $18,000 U D) $18,000 F I 24) Sea-Date's records showed that the direct labor cost variance was $75,000 F at the end of the year. Which is a logical explanation for this variance? A) The firm used fewer labor hours than allowed by the standards. B) The firm paid a lower rate for labor than allowed by the standards. Cj The firm used less material than allowed by the standards. D) The firm paid a lower price for the materials than allowed by the standards. 25) Sea-Date's records also that the direct labor efficiency variance was $5,000 U at the end of the year. Which is a logical explanation for this variance? A) The firm used more labor hours than allowed by the standards. B) The firm paid a higher rate for labor than allowed by the standards. C) The firm used more materials than allowed by the standards, 26) Which of the following statement is TRUE for a standard cost system? A) Standard cost systems help managers ensure the accuracy of financial records. B) Firms could use past performance or industry benchmarks to set standards. Cj Setting standard costs is a function of the firm's production department and does not require input from other departments. D] The standards used are the costs incurred to produce a product The following data relates to Quality Brand in questions 27-29: Quality Brand uses standard costs for its manufacturing division Standards specify 0.1 direct labor hours per unit of product. The static budget and actual results for variable overhead costs included the following data: Static Budget Actual Resulta Production volume 6,000 units 4,000 units Variable overhead costs $14,000 $15,200 Direct labor hours 600 DLH 480 DLH 27) How much is the standard cost per direct labor hour for variable overhead? A) $31.67 per direct labor hour B) $23.33 per direct labor hour C) $35.00 per direct labor hour D) $29.17 per direct labor hour 28) What is the variable overhead cost variance? (Round any intermediate calculations to the nearest cent, and your final answer to the nearest dollar.) A) $1,200 U B) $2,803 F C $4,003 U D) $5,004 F 29) What is the variable overhead efficiency variance? (Round any intermediate calculations to the nearest cent, and your final answer to the nearest dollar. A) $1,866 F B) $1,866 U C) $2,534 F D) $2,534 U 30) A firm finds that its actual sales volume for the month was lower than the expected sales volume in the static budget. This difference results in A An unfavorable flexible budget variance for variable costs B An unfavorable sales volume variance for variable costs C] An unfavorable flexible budget variance for sales revenue D) An unfavorable sales volume variance for sales revenue Actual fixed overhead $30,000 Budgeted fixed overhead $25,000 Standard overhead allocation rate $7/DLH Standard direct labor hours per unit 2 DLH Actual output 2,000 units 32) What is Zenith's fixed overhead spending variance? A) $3,000 F B) $3,000 U C) $5,000 F D) $5,000 U 33) How much fixed overhead did Zenith allocate to production based on direct labor hours? A) $25,000 B) $28,000 I c) $30,000 D) $14,000 34) What is Zenith's fixed overhead volume variance? A) $14,000 F B) $3,000 U C) $3.000 F D) $14,000 U