Management by exception means that managers focus on the most significant differences between actual costs an O True O False QUESTION 5 A company provided the following direct materials cost information. Compute the direct material quantity variance Standard costs assigned: Direct materials standard cost (405,000 units @ $2.00/unit) Actual costs Direct material costs incurred (403.750 units @ S2201 unit). 810,000 5 888,250 $2,750 Unfavorable $2.250 Unfavorable $2,750 Favorable $78 250 Favorable $2 500 Favorable QUE S TION 6 e budget is basec on a single predicted amount of sales or other activity