Question 31

A company has budgeted for materials of $170,000 but the actual costs are $164,000. The company has also budgeted for labour of $130,000 with actual costs being $133,000. The expense variance is:

Question 31 options:

a)	$6,000 adverse

b)	$3,000 adverse

c)	$6,000 favorable

d)	$3,000 favorable

Question 32

Higher prices from material suppliers will be reflected in the:

Question 32 options:

a)	labor rate variance

b)	material usage variance

c)	material price variance

d)	labor efficiency variance

Question 33

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

Question 33 options:

a)	labor efficiency variance

b)	material price variance

c)	labor rate variance

d)	material usage variance