5) The direct materials variance can be separated into two different variances: price and 1 Point Quality Volume Quantity 6) Direct labor variance can be divided into two parts: rate and -variances. 1 Point Materials Factory Overhead Time 7) Factory overhead variances are calculated differently than materials or labor because part of factory overhead is fixed cost and part of it is 1 Point Variable cost Product cost Unavoidable cost a) If there is an unfavorable materials price variance, would could be a potential reason for this variance? 1 Point Change in factory overhead Price increase from materials supplier Production employees are new employees 9) If there is a favorable direct labor rate variance, what could be a potential reason for this variance? 1 Point Production employee wage rate went down Materials wasted because of machine issues Employees took longer than expected to make the product 101 Standards can be set in a non-manufacturing setting when tasks are in nature. 1 Point Complex Repetitive Unique, different each time