Standard Cesting (Variable Cost Variances) Tailored Shirs Ine, makes custom tailored dreas shirts for businesspeople. The maserials used to produce the shirts are inexpensive, but as they are custom fit, the labor process is intensive. The supervisor decided to use cheaper labor this period to see whether cests conald be roduced. The following are TSI's standards: During the period the firm actually produced 7.732 units. The firm also had the following actual results: 10. Calculate the Direct Materials Price Variance (hint: isolate at time of purchase). A. $16,352.10 B. $22,28480 C. 527,060.00 D. $21,127,20 11. Defermine whether this variance (Direct Materials Price Variance) is favorable or unfavorable. A. Favorable B. Unfavorable C. Neither D. Cannot determine with given information. 12. Explain in words why the Direct Materials Price Variance identified above exists. A. The cost of materials purchased was greater than the firm expected. B. The amount of materials purchased was greater than the firm expected. C. The cost of materials purchased was less than the firm expected. D. The amount of materials purchased was less than the firm expected. 13. Calculate the Dirset Materiats Effriens Variancs A. 536,626.48 B. 510,274.88 C. 55,490.78 D. $3,45968 14. Determine whether this variance (Direst Materials Efficiency Variance) is favorable of unfavoratile. A. Finorable B. Unfavorable C. Neither D. Cannot determine with given information 15. Explain in words why the Direct Matcrials Fefficiesev Variance identified above exists. A. The cost of direct materials used in production was greater than the firm expected. B. The amount of raterials tsed in production was greater than the firm expected. C. The cost of materials used in production was less than the firm expected. D. The amount of materials used in production was less thun the fim expected 16. Calculate the actual price paid per hour for direct labor A. 51234 /hour B. $15,40 hour C. 518.00 hour D. $14.84 /hour 17. Calculate the Direet Labor Efficiency Variance: A. $39.433.20 B. $49,677,32 C. $23,729,00 D. $42,659,00 18. Determine whether this variance (Dircet I abor Efficiency Variance) is favorable or unfavorable. A. Favorable B. Unfavorable C. Neither D. Cannot determine with given information. 19. Was the manager's plan to decrease costs by finding cheaper labor a good one? Why/why not? A. Yes, the labor price variance was favorable. B. No, the labor efficiency variance was unfavorable. C. No, the total labor variance was unfavorable. D. Yes, the total labor variance was favorable. E. None of the above