QUESTIONS Determine if the following statements are true or false and then select the correct response below: An unfavorable direct materials cost variance occurs when the actual materials cost is less than the standard cost. Companies can use the static budget to effectively compute cost and efficiency variances. The efficiency variance measures how well the company uses its materials or human resources NA True False False O B False. False, True False. True False true. True False QUESTION 6 USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT 2 QUESTIONS: The standard cost card of a particular product specifies the following: Direct material 3 lbs at $6.00 per lb Direct labor 2.5 hours at $15.50 per direct labor-hour During September, 4.100 units of the product were produced and direct labor wages of $160,000 were incurred. A total of 10,000 direct labor-hours were worked. The company purchased and used 11,000 lbs of material at a cost of $71,500 Determine the direct labor efficiency variance. O A $1.125 Favorable O B.$3.875 Favorable C. $4.000 Unfavorable 0.56.450 unfavorable QUESTION 7 USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT 2 QUESTIONS: The standard cost card of a particular product specifies the following: Direct material 3 lbs at $6.00 per lb Direct labor 2.5 hours at $15.50 per direct labor-hour During September, 4.100 units of the product were produced and direct labor wages of $160,000 were incurred. A total of 10,000 direct labor-hours were worked. The company purchased and used 11,000 Ibs of material at a cost of $71,500. Determine the direct materials price variance for the month. A. $5,500 Unfavorable B. $5.500 Favorable C. $2,300 Unfavorable OD. $2,300 Favorable