Q1 A company budgeted $170,000 for materials, but the actual costs amounted to $164,000.The company also budgeted $130,000 for labour, but the actual cost was $133,000.The total expense variance is

Select one:

a.$3,000 U

b.$6,000 U

c.$3,000 F

d.$6,000 F

Q2 Higher prices from material suppliers will be reflected in

Select one:

a.Labour rate variance

b.Labour efficiency variance

c.Material price variance

d.Material usage variance

Q3 Poor-quality materials that require greater skill to work will be reflected in the

Select one:

a.Material price variance

b.Material usage variance

c.Labour rate variance

d.Labour efficiency variance

Q4 If the actual labour rate is higher than the standard labour rate and the actual labour hours are lower than the standard hours allowed, the labour variances will be as follows:

Select one:

a.Labour rate variance is unfavourable; labour efficiency variance is unfavourable

b.Labour rate variance is favourable; labour efficiency variance is unfavourable

c.Labour rate variance is favourable; labour efficiency variance is favourable

d.Labour rate variance is unfavourable; labour efficiency variance is favourable