1. If demand is insufficient to keep everyone busy and workers are not laid off, which of the following labor efficiency variance often will be a result: A) favorable. B) unfavorable. C) zero. D) either favorable or unfavorable
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
1. If demand is insufficient to keep everyone busy and workers are not laid off, which of the following labor efficiency variance often will be a result:
A) favorable.
B) unfavorable.
C) zero.
D) either favorable or unfavorable
2. A/an ______________ 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.
A) favorable.
B) unfavorable.
C) zero.
D) either favorable or unfavorable
3. When the materials price variance is recorded at the time of purchase, raw materials are recorded as inventory at:
A) replacement
B) standard cost
C) absorption cost
D) actual cost
4.When more hours of labor time are necessary to complete a job than the standard allows, the labor efficiency variance is
A) favorable.
B) unfavorable.
C) zero
D) either favorable or unfavorable.
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