Wright Inc.produces leather purses.Wright has developed a static budget for the first quarter based on 25,000 direct labor hours.During the quarter, the actual activity was 30,000 direct labor hours.Data for the first quarter are summarized as follows: 
Comparing the static budget to the actual outcomes, we can say:
A) direct materials variance is favorable.
B) direct labor variance is unfavorable.
C) the comparison is useful for assessing managerial efficiency.
D) a flexible budget should be used for assessing efficiency.
E) All of these are correct.
Correct Answer:
Verified
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