QUESTION 11

1. A company applies all (variable and fixed) overhead on the basis of direct labor hours. The following information is given: Direct labor efficiency variance: $8,000, Unfavorable Direct labor standard price (rate): $10 per hour Variable overhead efficiency variance: $3,200, Unfavorable The predetermined overhead rate for variable overhead is:

   	A.	$6
   	B.	$4
   	C.	$8
   	D.	$10

1 points

QUESTION 12

1. A 3 member family had a plan to purchase a 3 bedroom house for $210,000 (at a rate of $70,000 per bedroom in that area). The family actually bought a 3 bedroom house for $180,000. However, later the family had one member move to a different state and only 2 people live in the house. Now, the family is thinking that they should have purchased a 2 bed room house. Which of the following is not true?

   	A.	The total variance is $40,000, Unfavorable.
   	B.	The budget variance is $70,000, Unfavorable.
   	C.	The house purchase budget should have been $140,000.
   	D.	The house is under-utilized.