3 pts Question 45 The management of Guardian Fire Alarms has calculated the following variances: $11,000 U Direct materials cost variance Direct materials efficiency variance 36,000 F 16,500 F 13,500 U Direct labor cost variance Direct labor efficiency variance Total variable overhead variance Total fixed overhead variance 7500 F 4000 F What is the total direct materials variance of the company? $3000 F $5500 F $11,500 F $25,000 F Question 46 3 pts An intentional understatement of expected revenues or overstatement of expected expenses by managers in order to have a favorable performance evaluation is known as variance analysis budgetary slack appropriation benchmarking 3 pts u Question 47 Contribution margin is calculated by deducting. from sales revenue. total selling and administrative costs total fixed costs total product costs total variable costs 3 pts Question 48 Which of the following will appear as a line item in the traditional format of an income statement? total variable costs (manufacturing and non-manufacturing) total fixed costs (manufacturing and non-manufacturing) gross profit contribution margin Question 49 Which is the following is the most appropriate reason that sales mix decisions should be made using variable costing? All costs, including fixed costs, are controllable by upper management in the long run. Sales mix decisions primarily focus on fixed costs. Fixed costs do not affect the operating income in the long run. To increase profits, businesses should emphasize the products with the highest contribution margin per unit. 3 pts Question 50 Unit product cost calculations using absorption costing do NOT include direct materials variable manufacturing overhead fixed manufacturing overhead variable selling and administrative costs