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MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Which of the following statements is true of the difference between cost variances and efficiency1) variances? A) It pertains to the difference between the static budget and the previous year's actual results B) It pertains to the difference between the static budget and actual results. C) It pertains to the difference between the flexible budget and actual results. D) It pertains to the difference between the flexible budget and the static budget 2) Emerald Marine Stores Company manufactures special metallic materials and decorative fittings for luxury yachts that require highly skilled labor. Emerald uses standard costs to prepare its flexible budget. For the first quarter of 2015, direct material and direct labor standards for one of their popular products were as follows: 2) Direct materials: 1 pound per unit; $12 per pound Direct labor: 4 hours per unit; $15 per hour Emerald produced 5,000 units during the quarter. At the end of the quarter, an examination of the materials records showed that the company used 7,000 pounds of materials and actual total material costs were $98,000. What is the direct materials cost variance? A) $38,000 Favorable C) $14,000 Favorable B) $14,000 Unfavorable D) $38,000 Unfavorable 3) The management of Alpha Lawnmowers Company has calculated the following variances: 3) $8,000 U 35,000 F 15,000 F 12,000 U 2,000 F 5,000 F 3,050 F Direct materials cost variance Direct materials efficiency variance Direct labor cost variance Direct labor efficiency variance Variable overhead cost variance Variable overhead efficiency varianoe Fixed overhead cost variance When determining the total production cost flexible budget variance, what is the total fixed overhead variance of the company? D) $3,050 F $8,050 F B) $5,000 F A) $7,000 F 4) Which of the following is one of the reasons why companies use standard costs? A) to set performance targets B) to ensure the accuracy of the financial records C) to enhance customer loyalty D) to share best practices with other companies