Waste on the production line will result in an unfavorable materials quantity variance._ 17. The standard price per unit for direct materials should not include the cost of delivering the materials_ 18. Poor quality materials could have an unfavorable effect on which of the following variances? Labor Efficiency Variance Materials Quantity Variance Yes No Yes No Yes Yes No No A. Option A B. Option B C. Option C D. Option D B) C) D) 19. Which of the following would produce a labor rate variance? A. Poor quality materials causing breakage and work interruptions. B. Use of persons with high hourly wage rates in tasks that call for low hourly wage rates. C. Excessive number of hours worked in completing a job. D. An unfavorable variable overhead rate variance. 20. The Swenson Corporation has a standard costing system. The following data are available for June: Actual quantity of direct materials purchased. Standard price of direct materials. Material price variance Material quantity variance.. The actual price per pound of direct materials purchased in June is: 35,000 pounds $4 per pound $7.000 unfavorable $4,.200 favorable A. $3.92 B. $4.32 C. $4.08 D. $4.20 21. Dreary Credit Agency uses a standard cost system for the processing of its credit applications. The labor standard at Dreary is 10 applications per 8 hour day at a standard cost of $15 per hour. During the last pay period, Dreary's credit agents worked 1,920 hours and processed 2,500 applications. The total labor cost for the agents during this period was $29,184. What was Dreary's labor efficiency variance for this last pay period? A. $384 Unfavorable B. $816 Favorable C. $1,200 Favorable D. $1,500 Favorable