QUESTION 18 Which of the following would cause a labor efficiency variance to be favorable? a. the actual price is greater than the standard price Ob the standard hours allowed are greater than the actual hours worked. C. the actual wage rate paid is less than the standard rate allowed O d. None of the above are true. QUESTION 15 Cravey Pencil, Inc. prepared the following flexible budget for May and is in the process of interpreting the variances: Cravey Pencil, Inc. flexible budget Information Budget Price Quantity Material A $20,000 $1,000F $3,000U Material B $30,000 $500U $1,500F Direct manufacturing labor $40,000 $500U $2,500F The most likely explanation of the above variances for Material A is that: a. a lower price than expected was paid for Material A. O b. higher-quality raw materials were used than were planned. OC. the company used a higher-priced supplier. O d. Material A used during September was $2,000 less than expected