1. Which of the following variances is the difference between the actual cost of the input and its planned cost?

1. Total labor variance
2. Materials usage variance
3. Total budget variance
4. Materials price variance

c

2. Which of the following conditions leads to an unfavorable price variance?

1. It occurs when the actual usage of input is greater than the standard usage of input.
2. It occurs when the actual price is greater than the standard price.
3. It occurs when the standard price is greater than the actual price.
4. It occurs when the standard usage of input is greater than the actual usage of input.

3. Platinum Energy Corporations standard cost is $700,000. The allowable deviation is 10%. Its actual costs for three months are:

January	$630,000
February	750,000
March	725,000

The upper and lower control limits respectively are:

1. $725,000 and $640,000.
2. $750,000 and $650,000.
3. $760,000 and $640,000.
4. $770,000 and $630,000.