1.Which of the following statements is the most likely explanation for why a company would simultaneously experience both an unfavorable labor rate variance and a favorable labor efficiency variance?

a.The mix of workers assigned to a particular job consists mainly of new, relatively low-paid unskilled workers.

b.The mix of workers assigned to a particular job consists mainly of higher-paid, experienced individuals.

c.Defective materials caused more labor to be used to produce a standard unit.

d.Because of the production schedule, workers from other production areas were assigned to assist in this particular process.

2.

Which of the following statements best characterizes a properly implemented standard cost system?

a.All variances from standards should be fully analyzed.

b.Standards can assist in identifying the factors which cause significant variances.

c.Standard costs involve cost control which, in turn, always results in cost reduction.

d.All significant unfavorable variances should be fully analyzed but significant favorable variances need not be fully analyzed.