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11. [Answer Only Which of the following is NOT truc of "variance"? With disregard to other factors, direct manufacturing labor efficiency variance is likely to be unfavorable if underskilled workers are put on a job. Managers should interpret a favorable variance as "good news (3) With disregard to all other factors, the use of high-quality raw materials is likely to result in a favorable materials efficiency variance and an unfavorable materials price variance. The goal of variance analysis is for managers to understand why variances arise, to learn, and to improve future performance Excessive emphasis on meeting the standards may overshadow other important objectives. 12. [Answer & Solving Process] Venom, Incorporated, has budgeted sales in units for the next five months as follows: I June July August September October 6,000 units 4,300 units 6,100 units 5,800 units 3,900 units The management at Venom wants the ending inventory for cach month to be equal to 15% of the next month's sales in units. The inventory on May 31 contained 650 units. The company needs to prepare a production budget for the next five months. The total number of units produced in July should be: 4,300 units 24,030 units 3 4,045 units 4,570 units 5 5,995 units 13. [Answer Only At Eady Corporation, a variable manufacturing overhead cost is allocated based on machine- hours. The performance report for July showed that actual variable manufacturing overhead costs totaled 58,650 and that the associated variable overhead rate variance was $250 unfavorable and that the variable overhead efficiency variance is $150 favorable. If 5,000 machine-hours were actually worked to produce 800 units of product during July, the standard variable manufacturing overhead cost per machine-hour was: $10.50 per MH $1.68 per MH 3 S11.00 per MH $1.78 per MH 5 $1.76 per MH 5/6