Consider the following statements: When budgets are flexed, fixed costs are unaffected. An adverse variance results in a profit shortfall. Which of the statements is/are correct? Neither 1 nor 2 1 only 2 only 1 and 2

Which of the following statement is incorrect?Select one:a. There is a favorable variance when units sold are more than budget.b. An unfavorable variance occurs when it leads to an increase in income.c. A favorable variance occurs when it leads to an increase in incomed. An unfavorable variance occurs when it leads to a decrease in income.

Which of the following variances will always be favorable when actual unit sales exceed budgeted unit sales?Multiple ChoiceSales activityVariable costFixed costOperating profit

Which of the following statements is true?The materials price variance is computed based on the amount of materials purchased during the period.The standard price per unit for direct materials should reflect the final, delivered cost of the materials.In general, the production manager is responsible for the materials price variance.An unfavorable materials quantity variance occurs when the actual quantity used in production is less than the standard quantity allowed for the actual output of the period.Multiple ChoiceBoth statements 1one and 2 are true.Both statements 2 and 3 are true.All of the statements are true.None of the statements are true.

Which of the following statements are true? Multiple select question.A favorable labor rate variance is always favorable for a company.How production supervisors use direct labor workers can lead to labor rate variances.Overtime premiums can cause an unfavorable labor rate variance.Assigning highly skilled, highly paid workers to low skill, low pay level jobs will cause a favorable labor rate variance.

A particular firm with zero material inventory purchased 30,000 kg of material and used 25,000 kg. For control purposes, it is recommended that firms calculate the material price variance at the time of purchase. The variance could alternatively be calculated at the time of usage of that material. Which of the following statements most correctly reflects a comparison of the two methods for this firm? Group of answer choicesThe variance calculated on purchase will be larger than the variance calculated on usage, but in the same direction (which is either favourable or unfavourable).Whether calculated on purchase or usage, both variances will be unfavourable.The variance calculated on purchase will be smaller than the variance calculated on usage, but in the same direction (which is either favourable or unfavourable).Whether calculated on purchase or usage, both variances will be favourable.None of the given answers