Question 1 2 Points When spending is lower than expected for direct materials, the amount by which spending is less than planned is called an unfavorable direct-material variance (U). A True B False Question 2 2 Points A unfavorable labor efficiency variance is created when actual labor hours worked exceed standard hours allowed. A True B FalseQuestion 3 2 Points Bender Corporation has a favorable materials quantity variance. Which department would likely be asked to explain the cause of this variance? A Purchasing. B Marketing. Engineering. D Production.enema Consider the following information: Direct material purchased and used, 70.000 gallons Standard quantity ofdirect material allowed for May production. 6?.000 gallons Actual cost of direct materials purchased and used. $123,500 Unfavorable direct-material quantity variance. $5,850 Standard material price. $1.95 per gallon The directmaterial price variance is: Question 5 2 Points The following data relate to product no. 89 of Mansion Corporation: Direct material standard: 5 square feet at $3.40 per square foot Direct material purchased: 33,000 square feet at $3.50 per square foot Direct material consumed: 32,500 square feet Manufacturing activity: 6,400 units completed Use the information to calculate the following variances. The direct-material quantity variance is: $1,750 U. B $1,740 U. $1,700 U. $1,700 F. E $1,750 F.Question 6 2 Points Airon Company recently completed 12,200 units of its single product, consuming 37,000 labor hours that cost the firm $606,800. According to manufacturing specifications, each unit should have required 3 hours of labor time at $16.80 per hour. On the basis of this information, determine Airon's labor rate variance and labor efficiency variance. Rate Efficiency A. $14,640F $6,560F B. $14,640F $6,560U C. $14,80OF $6,720F D $14,80OF $6,720U $14,800U $6,720U A Choice B B Choice C C Choice E D Choice A E Choice DQuestion 7 2 Points A flexible budget for 26,000 hours revealed variable manufacturing overhead of $98,000 and fixed manufacturing overhead of $134,000. The budget for 39,000 hours would reveal total overhead costs of: (Round your intermediate calculations to 2 decimal places. Round your final answer to the nearest dollar.) A $338,000. B $377,000. $232,000. D $394,000. E $281,030.Question 8 2 Points Jerome Copper Company budgeted 126,000 process hours for the month of October when one of the company's cost functions was budgeted to be $2,976,000. The process hours actually worked during October were 135,000. Jerome Copper Company experienced a cost variance of $40,000 unfavorable related to this cost function. If the company's cost function includes a $16 per process hour rate, what is the formula used by Jerome Copper Company to derive its flexible budget? A Y = $16(Total process hours) + $960,000 B Y = $16(Total process hours) + $2,976,000 C Y = $16(Total process hours) + $920,000 D Y = $16(Total process hours) + $816,000 E Y = $16(Total process hours) + $856,000Question 9 2 Points The Step Company has the following information for the year just ended: Budget Actual Sales in units 32,600 30,000 Sales $326,000 $315,000 Less: Variable Expenses $195,600 $177,000 Contribution Margin $130,400 $138,000 Less: Fixed Expenses $83,000 $100,800 Operating Income $47,400 $37,200 The Step Company's sales-volume variance is: A $11,000 unfavorable. B $13,600 unfavorable. C $7,600 favorable. D $26,000 unfavorable.Question 10 The Step Company has the following information for the yearjust ended: Sales in units Sales Less: Variable Expenses Contribution Margin Less: Fixed Expenses Operating Income The Step Company's sales-price variance is: 51 5,000 unfavorable 51 6,300 unfavorable 51 5,000 favorable $16,300 favorable Budget 32.600 $326.000 $195.600 $130400 $83000 $41400 Actual 30.000 $315.000 $171000 $138.000 $100800 $312200