Multiple-Choice point(s). Choose the best answer by circling one letter. Each correct answer is worth_ 6. An unfavorable labor quantity variance may be caused by a paying workers higher wages than expected. b. misallocation of workers. c worker fatigue or carelessness. d higher pay rates mandated by union contracts. 7. The investigation of a materials quantity variance usually begins in the a production department. b. purchasing department. Csales department d controller's department. 8. Variance reports are a external financial reports. b. SEC financial reports. c internal reports for management. d All of these answers are correct. 9. The first step in the capital budgeting evaluation process is to a request proposals for projects. b. screen proposals by a capital budgeting committee. c determine which projects are worthy of funding. d approve the capital budget. 10. A company's cost of funds from creditors and stockholders is the a hurdle rate. b. cost of capital. c cutoff rate. d All of these answ swers are correct