Hot-Pots Corporation produces plastic pots for the garden. The following cost information for one pot is as follows: Direct Materials: 1 pound of plastic as a cost of .25 (cents) per pound Direct Labor 20 minutes at a cost of $14 per hour This month they have manufactured 1,200 pots. The actual production costs are as follows: Direct Materials: 1,210 pounds at .26 (cents) per pound Direct Labor: 395 hours at a total payroll cost of $5,175 1. Calculate the direct material price variance. A. 12.10 Favorable B. 12.10 Unfavorable C. 2.50 Favorable D. 2.50 Unfavorable 2. Calculate the direct material quantity variance. A. 12.10 Favorable B. 12.10 Unfavorable C. 2.50 Favorable D. 2.50 Unfavorable 3. Calculate the total direct material cost variance. A. 14.60 Favorable B. 14.60 Unfavorable C. 9.60 Favorable D. 9.60 Unfavorable 4. Calculate the direct labor rate variance. A. 70 Unfavorable B. 355 Favorable C. 70 Favorable D. 355 Unfavorable 5. Calculate the direct labor time variance. A. 355 Favorable B. 355 Unfavorable C. 70 Favorable D. 70 Unfavorable 6. Calculate the total direct labor cost variance. A. 425 Favorable B. 425 Unfavorable C. 250 Favorable D. 250 Unfavorable 7. Standard costs serve as a device for measuring efficiency. A. True B. False 8. One reason not to depend solely on historical records to set standards is that there may be inefficiencies contained in past costs. A. True B. False 9. A favorable cost variance occurs when actual cost is less than budgeted cost at actual volumes. A. True B. False 10. Standards are designed to evaluate price and quantity variances separately. A. True B. False