TRUE OR FALSE

1- The standard quantity or standard hours allowed refers to the amount of the input that should have been used to produce the actual output of the period. ( )

2-The standard price per unit for direct materials should reflect the final, delivered cost of the materials. ( )

3-A quantity standard indicates how much of an input should be used to make a unit of product or provide a unit of service.( )

4-Material price variances are often isolated at the time materials are purchased, rather than when they are placed into production, to facilitate earlier recognition of variances. ( )

5-If the actual hourly rate is greater than the standard hourly rate, the labor rate variance is labeled unfavorable (U). ( )

6-If skilled workers with high hourly rates of pay are given duties that require little skill and call for lower hourly rates of pay, this will result in a favorable labor rate variance. ( )

7- The labor efficiency variance is labeled favorable (F) if the actual hours used is less than the standard hours allowed for the actual output. ( )

8-The standard labor rate per hour should not include any employment taxes. ( )

9-The variable overhead efficiency variance measures the difference between the actual level of activity and the standard activity allowed for the actual output, multiplied by the fixed part of the predetermined overhead rate. ( )

10- The variable overhead efficiency variance does not actually measure how efficiently variable manufacturing overhead resources were used. ( )