The difference between actual results and budgeted results is known as a. management by exception b. a flexible outcome C. a flexible budget d. a variance QUESTION 14 Mizoni Manufacturing produces diving boards for residential swimming pools. For the year, management estimated that total manufacturing overhead would be $1,488,000. Management decided to use direct labor hours to apply manufacturing overhead and budgeted 62,000 direct labor hours. The balance in over- or underapplied overhead is deemed to be small. The following information was compiled before an adjustment had been made to close Manufacturing Overhead Control: Raw Materials Inventory $304,291 Work In Process Inventory Finished Goods Inventory Actual direct labor hours used Actual overhead incurred $337,997 $756,362 68,970 $1,434,576 For the year, manufacturing overhead was $220,704 underapplied $220,704 overapplied $144,976 overapplied $144,976 underapplied QUESTION 15 The calculation of the direct materials quantity variance is based on the amount of materials a. purchased b. budgeted c. used d. on hand