Acct 10

If the actual level of activity is greater than the planned level of activity, the activity variances will be ______.

unfavorable

An unfavorable labor efficiency variance can result from ______.

insufficient product demand poorly motivated workers faulty equipment

A planning budget called for 500 units to be produced and total direct labor cost of $7,500. Actual production was 600 units and actual direct labor cost was $9,300. The activity variance is ______.

$1,500 U

The difference between the actual materials used in production and the standard amount allowed for the actual output is reflected in the materials _______ variance

quantity or usage

Which of the following statements is true?

A labor efficiency variance is a quantity variance.

AH(AR - SR) is the formula for the variable overhead _____ variance.

spending

The labor efficiency variance is the difference between actual hours used and standard hours allowed multiplied by the ______ hourly rate.

standard

The materials price variance is ______.

charged to the production manager when production problems occur impacted by the delivery method chosen generally the responsibility of the purchasing manager

The difference between the actual level of activity and the standard activity allowed for the actual output x the variable part of the predetermined overhead rate is the variable overhead _____ variable

efficiency

The variable overhead _____ variance measures activity differences and the variable overhead ______ variance measures cost differences.

efficiency, rate

When the standard price is higher than the actual price, the materials price variance is ______.

favorable