8) Genent Industries, Inc. (GlI), developed standard costs for direct material and direct labor. In 2017, Gll estimated the following standard costs for one of their major products, the 30-gallon heavy-duty plastic container. Budgeted quantity Direct materials Direct labor Budgeted price 0.40 pounds S20 per pound S15 per hour 0.80 hours During July, GIl produced and sold 4,000 containers using 1,700 pounds of direct materials at an average cost per pound of S15 and 3,225 direct manufacturing labor hours at an average wage of S15.25 per hour The direct material price variance during July is A) $20,000 unfavorable B) S8,500 favorable C) S8,500 unfavorable D) $2,000 unfavorable 9) Midend's Camera Shop has prepared the following flexible budget for September and is in the process of interpreting the variances. F denotes a favorable variance and U denotes an unfavorable variance Flexible Budget Material A Material B Material C Variances Price Efficiency $29,000 37,000 44,000 1,200U 800F 1,500U $1,900F 700U 2,500F The explanation that lower-quality materials were purchased is most likely for A) Material A B) Material B C) Material C D) both Material A and C 10) Which of the following is true of variance? A) Managers should interpret a favorable variance as "good news" B) Managers should not simply interpret a favorable variance as good but should understand why the variance occurred. C) Managers' performance must be evaluated solely on single variance