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18. Ingrum Framing's cost formula for its supplies cost is $1,120 per month plus S11 per frame. For the month of June, the company planned for activity of 611 activity was 607 frames. The actual supplies cost for the month was $8,150. The spending variance for supplies cost in June would be closest to: a $309 unfavorable b. $309 favorable c. $353 unfavorable d. $353 favorable frames, but the actual level of 19. Which of the following would not cause a material quantity variance? a. Poorly maintained machines b. Poor quality of materials c. High purchase costs d. Inexperienced workers 20. Superior Micro Company gathered the following actual results for the current month Actual amounts: Units of products produced 6,000 $73,600 Direct labor cost (9,200 hours) Budgeted standard costs were: Direct labor 1.5 hrs./unit at $7.50/hr. What is the direct labor efficiency variance? a. $4,500 favorable b. $4,500 unfavorable c. $1,500 favorable d. $1,500 unfavorable 21. Which of the following is not a benefit of decentralization? a. Managers can react quickly to local information b. Sub-unit managers have incentives to perform well c. Better use employees' expertise d Lower-level managers become more involved in strategic planning 22. In a responsibility accounting system, which of the following is true? The manager should be involved in the development of the plan over which the manager has control and should be held accountable for the costs, revenues, or assets over which the manager has substantial control. A firm is responsible for reporting to the public all activities that have a social impact, a. such as pollution control A manager should be given very little autonomy Managers may neglect their own needs while working to achieve the objectives of the firm as a whole. c. d

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