The Bond Company uses standard costing and has established the following direct material and direct labor standards for each unit of production that it makes and sells for $25. Direct Materials 2 gallons at $4 per gallon Direct labor 0.5 hours at $8 per hour During September, the company made 6,000 units and incurred the following costs: Direct materials purchased 13,400 gallons at $4.10 per gallon Direct materials used in production 12,600 gallons Direct labor used 2,800 hours at $7.65 per hour The materials price variance for September was: No. of units $1,340 favorable $1,260 unfavorable O $1,260 favorable standard galore of material test for wait a Iuld standard geleer of in Alowed (SQ) 1126 standard Castor Gollonisip 184 Takal standard Materal Cart 845 Achiel galbni of mato al 1126 O $2,800 favorable $1,340 unfavorable Articol Goit par gallon of matte wa CAP The materials quantity variance for September was: booo . Aca galons $2,400 unfavorable standard gall (sa) 12000 O $5,600 unfavorable Stands Cast Rex Gall (sp) 41 46,00 Now units Sg of M X $2,460 unfavorable O $5,740 unfavorable Materals quantity Variano - $3,200 unfavorable = 84 perg allon (12600 - 2000 = 2400 u $980 favorable $280 unfavorable The labor rate variance for September was: No of unit 110cc) Strand hours of labor medparcurb 0:5] Total standard hours of liber Allowed (sh) 13.0001 standar Cast per hour (SR) siis Tebal standard laber cost $1,530 unfavorable Actual hours of labor. Used (AH) 1280 O $1,600 favorable Cast for hour of later weetAR) 7.2 Torat Actul labor cart (21,420 $980 unfavorable 24.1030 As the operational manager of a production facility, assume that you have asked to be notified of all variances that are in excess (in either direction) of 10% of standard. As such, you are practicing management by exception O participative management management by objectives decentralized management differential analysis 29924120327/take When creating financial statements, why is it essential to create the income statement before the balance sheet? Because net income is required to determine the balance in retained earnings O Because sales is an essential component of the balance sheet Because S&A costs are required to determine the balance in Plant & Equipment (net). Because cost of goods sold is a component of inventory Actually, the balance sheet must always be created first and used to create the income statement