18) The efficiency variance measures A) the change in quantities used over time B) how well the business uses its materials or human resouroe C) how quickly direct materials are processed into finished goods quantity used by the company and the quantity used by its competitors 19) Which of the following will A) when the actual materials allowed per unit )whe result in an unfavorable direct materials efficiency variance? quantity of direct materials used per unit exceeds the standard quantity of direct an unfa en the actual C) when the actual materials allowed per unit D) when the cost per unit of direct materials exceeds the standard cost of direct materials quantity of direct materials used per unit is less than the standard quantity of direct actual cost per unit of direct materials is less than the standard cost per unit of direct materials 20) A company's production department was experiencing a high defect rate on the assembly line, which was sowing down production and causing wastage of valuable direct materials. The production manager decided to purchase a higher grade of materials that would be more reliable, but he was worried that the cost of the new materials might negatively affect operating income This would produce a(n) A) favorable direct labor cost variance B) unfavorable direct materials efficiency variance C) unfavorable direct materials cost variance D) favorable direct labor efficiency variance 21) In a flexible budget, what will happen to fixed costs as the activity level increases? A) The fixed cost per unit will decrease B) The fixed cost per unit will remain unchanged. C) The fixed cost per unit will increase. D) Fixed costs are not included in a flexible budget. 22) A budget that is based on the actual activity of a period is known as a: A) continuous budget. B) flexible budget. C) static budget D) master budget. 23) An unfavorable materials quantity variance indicates that A) actual usage of material exceeds the standard material allowed for output. B) standard material allowed for output exceeds the actual usage of material. C) actual material price exceeds standard price. D) standard material price exceeds actual price