Final Questions

Before Sarah makes any changes based on the Budget Performance Report for September, she wants to be sure she understands the results, and has the following questions for you.

Answer the following questions $(1)$ and $(2).$ All questions pertain to the September data.

What caused the total cost variance for direct materials?

a$.$ The actual quantity of direct materials per unit was less than the standard quantity.

b$.$ The actual price for direct materials per unit was less than the standard price.

c$.$ The favorable price variance dominated the unfavorable quantity variance, causing the total cost variance for direct materials to be favorable.

d$.$ The unfavorable quantity variance dominated the favorable price variance, causing the total cost variance for direct materials to be unfavorable.

e$.$ A factor other than those listed caused the total cost variance for direct materials.

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What caused the total cost variance for direct labor?

a$.$ The actual number of labor hours per unit was less than the standard number.

b$.$ The unfavorable rate variance was larger than the favorable time variance, causing the total cost variance for direct labor to be unfavorable.

c$.$ The favorable time variance was larger than the unfavorable rate variance, causing the total cost variance for direct labor to be favorable.

d$.$ The actual rate for labor hours per unit was less than the standard rate.

e$.$ A factor other than those listed caused the total cost variance for direct labor.