Quiz #5 - ACCT 5002 V (Fall 2022) 1. Which of the following statements is true? The only difference between the static budget and flexible budget is that the flexible budget is prepared using planned output. A variance is the difference between the actual cost for the current year and the previous year. C Management by exception is the practice of focusing management attention on areas where performance meets expectations. A static budget is a budget that can be changed or altered after it is developed? Note: This question was written in error - Static budget cannot be changed or altered after it is 0 developed. All students will receive a mark for this question. Q. 2 A company makes table lamps, for which the following standards have been developed: Standard Inputs Standard Price Expected for Each Expected per Unit of Output Unit of Output Direct materials 20 kilograms $2 per kilogram Direct labour 6 hours $8 per hour During January, production of 100 lamps was expected, but 110 lamps were actually completed. The company had switched to a new supplier and was eager to see the impact of this new supplier for raw materials. During the month, direct materials purchased and used were 2,100 kilograms at an actual was $9.00. price of $2.20 per kilogram. Direct labour cost for the month was $5,310, and the actual pay per hour Required: unfavourable? a) Compute the direct material price and efficiency variance. Include if these were favourable or unfavourable? b) Compute the direct labour rate and efficiency variance. Include if these were favourable