Standard Cost For each of the following statements enter a T in the blank if the statement is True, and an F if the statement is False. 1. The material quantity variance is computed on a basis of the quantity of a materials purchased during the period 2. f variable overhead is based on direct labor hours, it is impossible to have a favorable labor efficiency variance and unfavorable variable overhead efficiency variance for the same period. standards can be used to forecast cash flows and to plan n standard costing, prac nventory as well as to signal abnormal deviations in costs 4. Included in direct material quantity standards should be an allowance for unavoidable waste, spoilage, and other normal inefficiencies. 5. A cost variance is favorable if the actual price or quantity is greater than the standard price or quantity. 6. If the material price variance and the material quantity variance are computed at the same time, the mutual price quantity variance should be included as part of the quantity variance 7. Management by exception means that a manager's attention must be directed to those parts of an organization where things are proceeding in accordance with plans. 8. Standards set by an organization must reflect efficient future operations of that organization. A standard can be regarded as the budgeted cost for one unit of product 10. The standard direct labor rate would not include any allowance for fringe benefits or other Labor- related costs. 11. The following activity took place in Solo Company during May 19X6: Number of units produced 450 units 1,500 feet Material purchased Material used in production 720 feet Cost per foot for material purchased $3 The standard cost card indicates that 1.5 feet of materials are allowed for each unit of product The standard cost of the materials is $4 per foot. Complete the following analysis of direct materials cost for the month Actual Quantity of Standard Quantity Actual Quantity of Inputs at Standard Allowed for output Inputs, at Actual Price at Standard Price (AQ x AP) (AQ x SP) (SQ x SP) CA total ance can't be computed in this situation, since the amount of materials purchased d from the amount of materials used in production.)