18. To calculate budgeted direct labor costs, multiply the number of units to be produced by the number of projected direct labor hours. Next, multiply that total by the average direct cost per hour.TrueFalse22. A flexible budget summarizes revenues and costs for various levels of sales volume within a relevant range.TrueFalse29. A cost variance measures the difference in quantities of actual inputs used and the standard quantity of inputs allowed for the actual number of units produced.TrueFalse32. Unfavorable variances are subtracted from each other to arrive at a favorable variance.TrueFalse34. A direct labor cost variance is unfavorable if the employer pays workers more per hour than budgeted.TrueFalse36. In a standard cost system, the manufacturing overhead allocated to production equals the standard overhead allocation rate multiplied by the standard quantity of the allocation base allowed for expected output.TrueFalse37. The direct materials cost and efficiency variances make up the total direct materials variance.TrueFalse41. Which of the following statements is true of absorption costing?A) It considers variable selling and administrative costs as product costs.B) It considers fixed selling and administrative costs as product costs.C) It considers fixed manufacturing overhead cost as product costs.D) It considers variable manufacturing overhead cost as period costs.42) Which of the following is true of the traditional format of the income statement?A) It is prepared under the variable costing method.B) It shows contribution margin as a line item.C) It is not allowed under GAAP.D) It is prepared under the absorption method.43) Unit product cost calculations using absorption costing do not include ________.A) fixed manufacturing overheadB) variable manufacturing overheadC) variable selling and administrative costsD) direct materials85. Provide responses to the following questions regarding the discount rate.Question? Your responseWhat does the discount rate represent?What are other names for the discount rate?Is the following statement true? Discuss the reason for your response. "The higher the risk, the lower the discount rate."