Which of the following is a reason standard costs are separated into two components?

A$.$ The price and quantity variances need to be identified separately to correct the actual major differences.

B$.$ Identifying variances determines which manager must find a solution to major discrepancies.

C$.$ If a negative variance is overshadowed by a favorable variance, managers may overlook potential corrections

D$.$ all of these choices

If the actual quantity of direct materials used in producing a commodity differs from the standard quantity, the variance is a $$ variance.

A$.$ Controllable

B$.$ Price

C$.$ Quantity

D$.$ Rate

If the price paid per unit differs from the standard price per unit for direct materials, the variance is a $$ variance.

A$.$ Variable

B$.$ Controllable

C$.$ Price

D$.$ Volume

If the wage rate paid per hour differs from the standard wage rate per hour for direct labor, the variance is a $$ variance.

A$.$ Variable

B$.$ Rate

C$.$ Quantity

D$.$ Volume

If the actual direct labor hours spent producing a commodity differ from the standard hours, the variance is a $$ variance.

A$.$ Time

B$.$ Price

C$.$ Quantity

D$.$ Rate