1)Which quantity do most companies use to calculate the materials price variance?

Quantity of materials actually used

Quantity of materials actually purchased

Quantity of materials actually budgeted

Quantity of materials that should have been used given the actual production level.

2) Which of the following is not needed to calculate the labor rate variance?

Standard labor rate

Standard hours that should have been worked to achieve the actual number of units produced

Actual hours

Actual labor rate

3) A favorable materials quantity variance exists when

Actual quantity purchased is less than budgeted quantity.

Actual price paid for materials is less than the standard price for material.

Actual material used is less than the standard quantity allowed.

Standard quantity of material allowed is less than actual material used.

4) Budgeted fixed MOH minus fixed MOH applied to WIP is the fixed MOH __________ variance.

controllable

efficiency

spending

volume

overall