Machine Operators 5 4 Management and distribution workers 2 1 Average Employee Salary $ 8.00 hr. $ 9.00 hr. Hours worked per employee 2,100 2,000 to. Do not make changes in the production area. b. Make changes to the production area c. Either option is irrelevant to employees d. Both alternatives have identical results in terms of cost 18. SQP manufactures portable flashlights. Management is considering increasing the product price by $ 0.50 per flashlight for next year. The increase in sales price is expected to produce a 3,000 reduction in demand for the product. This year the company has the following data: Sale price $ 4.50 Cost per unit 3.00 Demand for the product 20,000 units If the price of the product is increased next year, the projected earnings will result in: to an increase of $ 4,000. b. a decrease of $ 4,000 c. an increase of $ 6,000. d. a decrease of $ 4,500. 19. The variation that results for direct materials when the units of materials used exceed the standard materials and when the cost per unit of purchased materials is less than the cost per standard unit: Price efficiency to unfavorable unfavorable b. favorable favorable c. favorable unfavorable d. unfavorable favorable 20. The variation in efficiency is calculated in a standard cost system for: to. direct materials. b. direct labor. c. variable indirect costs. d. all of the above. 21. The flexible budget variation measures: to. How much the costs and income should have been for