B) Price variance is the difference between the actual and standard unit price C) Usage variance is the difference between the actual and standard quantity D) Unfavorable variances occur whenever actual prices or actual usage of E) Managers determine whether variances are significant based on an of an input multiplied by the number of inputs used. of inputs multiplied by the standard unit price of the input inputs are greater than standard prices or standard usage acceptable range that has top and bottom measures called control limits. 9. In manufacturing firms, standard costs are developed for direct materials, direct labor, and overhead. A) True. B) False. 10 The total budget variance is the sum of the actual cost of the input and its planned cost. A) True. B) False. Ideal standards can be achieved under efficient operating conditions. Allowance is made for normal breakdowns, interruptions, and less than perfect sill A) True. B) False 12. The materials price variance (MPV) measures the difference between what should have been paid for raw materials and what was actually paid. A) True. B) False. 13. Labor hours can be purchased and stored for future use in the same way that materials can be. Likewise, the labor rate and labor efficiency variances will not always add up to the total labor variance. A) True B) False. 14. As improvements in production take place and conditions change, standards may need to be revised to reflect the new operating environment. A) True. B) False