The standard direct labour specification for one of HG Ltd's products is 5 hours @ 8 per hour; last month, 6,000 units were produced, giving rise to labour efficiency and rate variances of 16,000F and 14,000A respectively. What was the actual direct labour rate per hour during the month? (To nearest 0.50) O A. 7.00 0 B. 7.50 0 C. 8.00 0 D. 8.50 Consider the following statement: A favourable variance between flexed budget sales revenue and actual sales revenue can only arise from higher prices being charged than were envisaged in the original budget.' Is the above statement true or false? O A. True O B. FalseTest your knowledge of various types of variances. Match the names of the variances on the left with the corresponding definitions on the right by choosing the appropriate letter in the drop-down list in the left hand table. 1. Direct materials price variance A. Difference between the actual cost of non-variable overheads and that shown in the flexed budget. 2. Sales price variance B. Difference between the profit as shown in the original budget and that shown in the flexed budget. 3. Direct labour rate variance C. Compares the number of hours that would be allowed for the achieved level of production with the actual number of hours. 4. Sales volume variance D. Difference between the actual sales revenue figure and that shown in the flexed budget. 5. Fixed overhead spending variance E. Compares the actual quantity of direct materials used and the quantity according to the flexed budget. 6. Direct labour efficiency variance F. Difference between the actual cost of direct materials used and the cost that was allowed given the quantity used. 7. Direct materials usage variance G. Difference between the actual cost of hours worked and the allowed cost.The calculation of direct labour variances shows a favourable labour rate variance of 2,600 and an adverse labour efciency variance of 3,200. Which ONE of the following sentences is the best interpretation of this result? O A. A machine was not working, leading to idle time for which the employees should not be blamed O B. The union has negotiated higher-than-expected pay increases 0 C. The department has introduced new methods of working and there have been overtime payments to compensate for extra hours of working 0 D. A lower grade of employee has been employed compared with the grade used for the budget, but the employees have taken a longer time to complete the work required Budgeting can be used as a form of: 1. Feedback control. 2. Feedforward control. Which of the above statements is/are correct? O A. 1 and 2 O B. 1 only O C. Neither 1 nor 2 O D. 2 only