What type of variance results when the actual labor rate is different from the standard labor rate? 8 Multiple Choice Sales volume variance. Materials price variance. Labor rate variance. Materials quantity variance. Labor efficiency variance. What type of variance results when the actual materials price is different from the standard materials price? 7 Multiple Choice Sales volume variance. Materials price variance. Labor rate variance. Materials quantity variance. O O Labor efficiency variance. The anticipated costs incurred under normal conditions to produce a specific product or to perform a specific service are: 6 Multiple Choice Variable costs. Fixed costs. Standard costs. Product costs Period costs Identify the situation below that will result in a favorable variance. 5 Multiple Choice Actual revenue is lower than budgeted revenue. Actual income is lower than expected income. Actual costs are higher than budgeted costs. Actual revenue is higher than budgeted revenue. Actual expenses are higher than budgeted expenses. A budget based on several different levels of activity, often including both a best-case and worst-case scenario, is called a: 4 Multiple Choice Rolling budget. Production budget. Flexible budget. Merchandise purchases budget. U Fixed budget. Which of the following statements about variance reports is not true? 3 Multiple Choice Can be prepared for any period of time (month, quarter, year). Allow management to compare how well a cost center has performed compared to its budget. Are only prepared for cost centers with significant expenditures. Show variances between actual results and the budget. Often show a separate column with the budget variance percentage. Another name for a static budget is: 2 Multiple Choice Standard budget. Flexible budget. Variable budget Fixed budget. Master budget. Which of the following statements is not part of the flow of events in variance analysis? 1 Multiple Choice Preparing a standard cost performance report. Working to ensure that all variances are favorable. Identifying questions and their explanations. Taking corrective and strategic actions. Computing and analyzing variances