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at standard cost. The company has established the following unit of product Standardiou 1.3 hours$22 00hour total factory wages for June were S800,000, 90 percent of which were for direct labor. The compar Standard Stand ard Cost $28 60 manufactured 25,000 units of product during June using 32,000 direct labor hours. The direet labor rate variance for June is: A) $16,000 favorable B) S16,000 unfavorable C) $96,000 favorable D) $96,000 unfavorable. 19. The direct labor budget is based on: A) the desired ending inventory of finished goods. B) the beginning inventory of finished goods C) the required production for the period. D) the required materials purchases for the period. 20. The best way to determine effective cost control is to compare static budgets to actual cost the activity levels differ between budget and actual A) True B) False 21. A budgeted balance sheet is produced before the cash budget. A) True B) False 22. The Fixed Manufacturing Overhead Budget Variance is calculated by the following Budgeted Fixed MOH - (Fixed Overhead Rate x Standard Hours) A) True B) False