K L M N O P 19. True or false: standards are used to help break down spending variances into two categories: price variances and quantity variances. Answer: 10. True or false: when direct labor is used as the basis for applying standard VMOH rates, if the direct labor efficiency variance is unfavorable, the variable overhead efficiency variance will be unfavorable Answer: 11. Which of the following is an unfavorable variance? a) actual costs costs per the planning budget c) actual revenue > revenue per the planning budget d) none of the given choices are unfavorable variances Answer: 12. Bandar Industries manufactures a football helmet which requires a special plastic. During the quarter ending June 30, the company pussed and used 5.000 kg of plastic at a cost of $3.50 per kg. According to standard cost for direct materials, each helmet requires 1.5kg of plastic and the standard price is $3.25/ During the year, the company produced 3,000 helmets. Calculate the price variance for direct materials a) $1,250 favorable b) 5750 favorable c) $750 unfavorable d) $1250 unfavorable Answer: 13. Bandar Industries manufactures a footballhelmet which requires a special plastic. During the quarter ending June 30, the company purchased and used 5,000 kg of plastic at a cost of $3.50 per kg. According to standard cost for direct materials, each helmet requires 1.5kg of plastic and the standard price is $3.25/kg During the year, the company produced 3.000 helmets. Calculate the quantity variance for direct materials. a) $1,625 favorable b) $1,750 favorable c) $1,750 unfavorable d) $1,625 unfavorable