Part I

The following is the probable cause of an unfavorable direct labor cost efficiency variance: Select one:

a. employees are less skilled

b.employees worked fewer hours than the standard hours calculated for the current activity level

c.the materials used in the production were of superior quality

d.the salary paid was higher than the standard salary

Variations in efficiency and price are subcomponents of the variation of: Select one:

a. Sales volume (sales volume variance)

b.Denominator level (denominator volume variance)

c.Static Budget

d.Flexible budget

When in the standard cost system the amount of materials used is greater than the amount of standard materials that the product should have used, the resulting Direct materials efficiency variance account: Select one:

a. The variation is favorable and is computed based on the standard price that should have been paid.

b.The variation is unfavorable and is computed based on the actual price actually paid.

c.The variation is unfavorable and is computed based on the standard price that should have been paid.

d.The variation is favorable and is computed based on the current price paid for the materials