ered materials of lower quality in an effort 22. The purchasing agent of the Charlton Company ord variance. The lower quality In this proved to be unsuitable on the production line and resulted in excessive waste. and quantity variances omize on price. Duc to a mistake in production scheduling by the production manager shipment by truck, resulting in an unfavorable materials price material shipment tll were nusb- shipped by airfreight at a rate higher than that ordinarilyc situation, who should be held responsible for the materials prce Materials Quantity Variance Purchasing Agent Production Manager Purchasing Agent Production Manager Materials Price Variance A. B. C. D. Purchasing Agent Production Manager Production Manager Purchasing Agent Bue Comoration's standards call for 3,900 direct labor-hours to produce 1,300 units of product During May 1,200 units were produced and the company worked 1.200 direct labor-hours. The standard hours allowed for May production would be: A. 3,900 Hours B. 1,200 Hours C. 3,600 Hours D. 2,700 Hours 24. The direct labor variance can be divided into two variances A. rate variance and price variance. B. C. D. price variance and usage variance. rate variance and efficiency variance price variance and efficiency variance. 25. Which variance is directly impacted if a worker drops the raw material during production and the raw material must be discarded? A. Direct materials quantity variance B. Direct materials price variance C. Direct labor rate variance D. Direct labor efficiency variance Bonus Questions 26. The difference between total sales in dollars and total variable expenses is called: A. net operating income. B. net profit. C. the gross margin. D. the contribution margin. 27. Tien's Ice Cream sells ice cream cones for $5 per customer. Variable costs are $2 per cone. Fixed costs are $2100 per month. What is Dairy Days' contribution margin ratio? A. 262% B. 60% C. 350% D. 57%