1. Which of the following will determine the total variance for manufacturing overhead?

The difference between the overhead applied to inventory at standard and the actual overhead costs

The difference between fixed overhead and variable overhead

The difference between the efficiency variance and the rate variance

The difference between the controllable overhead variance and the overhead volume variance

Scotto Designs has the following standards for the production of scarves:

		Standard Quantity		Standard Price
Direct materials		1.2 yards per scarf		$4.70 per yard
Direct labor		0.15 hours per scarf		$11.00 per hour

2. The company used 985 yards of material in order to make 800 scarves in April. The company purchased 1,100 yards at $4.60 per yard. How much is the direct materials quantity variance?

$110 favorable

$117.50 unfavorable

$8 unfavorable

$705 unfavorable

3.Companies evaluate performance of subunits and subunit managers in order to

identify successful operations.

influence the behavior of managers.

determine areas that need improvement.

all of these answer choices are correct.