ulaglaph 2 Styles 4. When implementing an ABC system, the costs attached are generally higher when: a. Employees are well trained and experienced b. When there is managerial support for the process c. More activities are involved. d. All the above 11. Asset Rich Ltd is a capital-intensive firm. Indirect costs make up nearly 70% of the product costs. The company has no direct material costs because customers provide the direct materials used for each job. To plan and control such costs, the firm employs flexible budgets and standard costs. Overhead rates, based on direct labour hours, are derived from the master budget. Master Budget Actual Results Units produced 4,000 3,620 Direct Labour Hours 10,000 11,000 Fixed Overhead $200,000 $205,000 Variable Overhead $320,000 $355,000 Direct Labour $200,000 $180,000 The direct labour price variance was: a. $18,000 U 6. $40,000 F c. $39,000 Fd. $40,000 U 13. Trade-offs may be required between: a. Sunk costs and qualitative factors b. Quantitative and qualitative factors c. Sunk costs and opportunity costs d. Multiple products and opportunity costs