Answer these questions above.

. 1. An unfavorable materials quantity variance may be the result of: A. a greater than anticipated waste in the manufacturing process an increase in the cost per unit of raw materials a decrease in the cost per unit of raw materials D a lower than anticipated waste in the manufacturing process Advantages of Standard Costs A. Facilitate management planning Useful in setting selling prices Useful in highlighting variances in management by exception Simplify costing of inventories and reduce clerical costs All of these 3. Setting standard costs requires input from all persons who have responsibility for costs and quantities A. True B. False 4. Ideal standards represent optimum levels of p p pg erformance under perfect operating conditions. A. True B. False 5. Normal standards represent efficient levels of performance that are attainable under expected operating conditions. A True B. False 6. When actual costs exceed standard costs, the variance is unfavorable. A. True B. False 7. To interpret properly the significance of a variance To interpret properly the significance of a variance, you must analyze it to determine the underlying factors True B. False