Reference no: EM132632293

Problem 1: If less direct materials are used than expected by the standard

A. the direct materials price variance is unfavourable

B. the direct materials price variance is favourable

C. the direct materials efficiency variance is favourable

D. the direct materials efficiency variance is unfavourable

Problem 2: Which of these factors could not be the cause of a direct labour efficiency variance?

A. a new wage rate agreed between unions and management

B. improved worker training

C. a change in the production process that affects the usage of direct labour hours

D. labour hour standards that are too low

Problem 3: Revenue variances can be broken down into:

A. sales price variance and sales volume variance.

B. sales spending variance and sales efficiency variance.

C. sales price variance and sales efficiency variance.

D. sales spending variance and sales volume variance.