Use the following Variance Table to answer the next four questions. Materials Price Var. Materials Quantity Var. S6,000 Fav. Labor Rate Variance Labor Efficiency Var. $4,000 Fav. $2,000 Unf. Variable Overhead Spend. Var. Variable Overhead Effic. Var. Fixed Overhead Budget Var. Fixed Overhead Volume Var. S1,800 Fav, $2,500 Fav. $1,000 Unf. $5,000 Fav. S1,500 Unf. 13, Ir the purchasing manager bought lower quality materials than specified in the company's standards, this could explain both the Materials Price Variance and the Materials Quantity Variance. A) B) True False 14) The company may have used direct labor hours as its cost driver for overhead. A. True B. False There were more actual direct labor hours used in the factory than the standard number of labor hours allowable for the actual production. 15) A. True False B. Assume that the above company uses 11.000 hours as its denominator level. If the company had used 10,000 hours at the denominator level, the standard rate for variable overhead would have been: A. Smaller B. Larger C. The same 16) An unfavorable activity variance for a cost indicates that spending was higher than it should have been for the actual level of activity for the period. A) B) 17) True False