Pick the correct answer, show work where it appies 25. Jason, Inc. produces leather purses. Jason has developed a static budget for the first quarter, based on 20,000 direct labor hours. During the quarter, the actual activity was 22,000 direct labor hours. Data for the first quarter are summarized as follows: Static budget Actual costs (20,000 hours) (22,000 hours) Direct Materials $ 80,000 $ 87,000 Direct labor 160,000 174,000 Rent 48,000 50,000 Total $288,000 $311,000 Comparing the static budget to the actual outcomes, we can say the following: a. the manager had more direct labor hours. b. the variances are all unfavorable. c. the comparison is not useful for assessing managerial efficiency. d. a flexible budget should be used for assessing efficiency. e. all of these. 26. What is the flexible budget variance for the first quarter? a. $1,000 U b. $23,000 U c. $1,000 F d. $23,000 U e. none of these 27. What is the flexible budget amount for the first quarter? a. $288,000 b. $311,000 c. $312,000 d. $261,000 e. Cannot be determined 28. During the year, Hawkings produced 10,000 units, used 20,000 direct labor hours, and incurred variable overhead of $90,000. Budgeted variable overhead for the year was $88,000. The hours allowed per unit are 2.1. The standard variable overhead rate is $4.00 per direct labor hour. The variable overhead spending variance is: a. $2,000 F. b. $6,000 U. c. $10,000 U. d. $2,000 U. e. none of these. 29. Budgeted variable overhead for the year is $120,000. Expected activity is 20,000 standard direct labor hours. The actual hours worked were 18,000 and the standard hours allowed for actual production were 19,500. The variable overhead efficiency variance is: a. $0. b. $12,000 F. c. $3,000 F. d. $9,000 F. e. none of these.