4 & 5

QUESTION 4 5 poin The direct labor variance can be separated into the labor rate and labor efficiency variances labor overhead and labor efficiency variances O labor quantity and labor efficiency variances labor rate and controllable labor variances QUESTION 5 Which of the following statements is FALSE concerning standard costs and variances? O Currently attainable standards are standard costs that take into account the possibility that a variety of circumstances may lead to costs that are greater than management would consider ideal. The term standard cost refers to the cost management believes should be incurred to produce a good or service under anticipated conditions. When materials are issued to production, Work in Process Inventory is debited for standards costs while Raw Materials Inventory is credited at actual costs. O Variance analysis involves dividing the total variance between standard and actual cost for material, labor and overhead into two components. O The total material variance can be divided into a material price variance and a material volume variance