maierials qUantity variance should be computed: when materials are purchased c. based upon the difference between the actual and standard prices per unit times the actual quantity used. d. only when there is a difference between standard and actual cost per unit for the materials. upon the amount of materials used in production. 16. If manufacturing machines are breaking down more than expected, this will contribute to a(n): a. unfavorable direct manufacturing labor price variance b. favorable direct manufacturing labor efficiency variance c. favorable direct manufacturing material efficiency variance d. unfavorable direct manufacturing labor efficiency variance 17. Self-imposed budgets typically are: a. not subject to review by higher levels of management since to do so would contradict the participative a of the budgeting processing. b. not subject to review by higher levels of management except in specific cases where the input of higher management is required. subject to review by higher levels of management in order to prevent the budgets from becoming too loo not critical to the success of a budgeting program. 1S. A favorable efficiency variance for direct manufacturing labor indicates that: a lower wage rate than planned was paid for direct labor a. b. c. a higher wage rate than planned was paid for direct labor less d manufacturing labor-hours were used during production than planned for actual output t manufacturing labor-hours were used during production than planned for actual output d. more direc 19. Management by exception is a practice whereby managers focus more closely on a. a static budget b. areas that are not operating as anticipated e. activity-based costing d. exceptional decision-making models 20. Variances should be investigated EXCEPT when a. expected costs of investigation exceed expected benefits. b. better decisions are required by the organization c. costs incurred must be reduced d. variances are used as a control for managers 1. A labor efficiency variance resulting from the use of poor quality materials should be charged to: a. the CEO (b.) the purchasing agent in charge of purchasing the raw materials. c. manufacturing overhead. d. the IT department