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True False (10 points) 1). The materials price variance is computed based on the amount of materials purchased during the period, 2) If the actual hourly rate is greater than the standard hourly rate, the labor rate variance is labeled unfavorable (U). 3) _The variable overhead efficiency variance measures the difference between the actual level of activity and the standard activity allowed for the actual output, multiplied by the variable part of the predetermined overhead rate. If demand is insufficient to keep everyone busy and workers are not laid off, an unfavorable (U) variable overhead efficiency variance often will be a result unless managers build excessive inventories. 5) The standard quantity or standard hours allowed refers to the amount of the input that should have been used to produce the actual output of the period. 6) ROI and residual income are tools used to evaluate managerial performance in investment centers. 7) Residual income is the difference between net operating income and the product of average operating assets and the minimum rate of return 8) Move time is considered non-value-added time. 9) _Throughput time is the amount of time required to move a completed unit from the factory floor to the warehouse 10) Residual income can be used most effectively in comparing the performance of divisions of different size