6. Mark the statement which is FALSE by placing the letter of the Answer on the line a. Variance where actual expense is greater than budgeted expense is unfavorable b. Total amount of variable cost changes in direct proportion to a change in the level of activity of volumes increase, total variable expense increases) c. Fixed cost per unit decreases when the level of activity decreases. d. Calculating quantity variance means you hold price constant and reflect the change between actual and standard quantity 10. Mark the statement which is FALSE by placing the letter of the Answer on the fine. a. Profit Centers incur costs or expenses without directly generating revenues. b. Divisions are organized into separate departments to improve efficiency and/or effectiveness C. Allocation of Indirect expenses is driven by judgment, such as floor space for rent and sales for advertising expense. d. When allocating costs to prepare departmental income statements, revenues and direct expenses are accumulated by department, indirect expenses are allocated across all service and operating departments, and service department expenses are allocated to operating departments