1. If the Rate Variance is significant, and management decides the standards need to be adjusted, which element needs to be adjusted.

Favorable Efficiency Variance

Unfavorable Efficiency Variance

Favorable Total DL Variance

2. If the Rate Variance is significant, and management decides the standards need to be adjusted, which element needs to be adjusted.

Favorable Rate Variance

Unfavorable Rate Variance

Favorable Total DL variance

Unfavorable Total DL variance

Unfavorable Total DL Variance

3. The company had a problem with the production line and had to throw away some materials. Select the most likely outcome.

Favorable Price Variance

Unfavorable Price Variance

Favorable Use Variance

Unfavorable Use Variance

4.

Management is considering eliminating a product line based on traditional costing. After completing an ABC costing analysis, the ABC method indicates that the unit cost of the product line is significantly less than under traditional costing.

Management should... (choose the best answer).

Eliminate the product line

Keep the product line

Reconsider eliminating the product line

None of the above.