1. Give the complete formula describing what costs would be debited to Work-in-Process in a standard costing system.

i.e. _________ price x _________ quantity for ____________

2. To what account would any variance ultimately be charged in a standard costing system? Correct answer is NOT the variance accounts.

3. What distinction must be made when computing the materials price variance vs. the materials quantity variance that is not an issue with the direct labor or variable overhead variances? Be sure to state why we bother to differentiate?

4. What does an unfavorable direct labor efficiency variance mean? Who is held responsible?

5. What does a favorable direct materials price variance mean? Who is held responsible?