1. Which of the following is the correct equation for computing the total labor variance?

1. Total labor variance = (Actual hourly wage rate Actual direct labor hours used) (Standard hourly wage rate Actual direct labor hours used)
2. Total labor variance = (Actual hourly wage rate Actual direct labor hours used) (Standard hourly wage rate Standard hours allowed)
3. Total labor variance = (Standard hourly wage rate Standard direct labor hours used) (Actual hourly wage rate Standard hours allowed)
4. Total labor variance = (Standard hourly wage rate Standard direct labor hours used) (Standard hourly wage rate Actual hours allowed)

2. Which of the following is true of a production managers responsibility?

1. Production manager is generally responsible for labor rate variance.
2. Production manager is generally responsible for controlling materials price variance.
3. Production manager is generally responsible for establishing product sales price.
4. Production manager is generally responsible for quantity discounts.

3. Which of the following is the difference between target costing and kaizen costing?

1. Target costing is a continuous, short-term approach to cost reduction, whereas kaizen costing is a long-term approach to cost reduction.
2. Target costing is a long-term approach to cost reduction, whereas kaizen costing is a continuous, short-term approach to cost reduction.
3. Target costing is used for products that go through different processes, whereas kaizen costing is used for products of uniform nature and design.
4. Target costing is used for products of uniform nature and design, whereas kaizen costing is used for products that go through different processes.