Which of the following direct labor variances uses the standard hours allowed for the actual

number of units produced?

Price Efficiency

A$.$

B$.$

C$.$

D$.$

Yes

No

Yes

No

Yes

No

No

Yes

A$)$ Option A

B$)$ Option B

C$)$ Option C

D$)$ Option D

The variable overhead price variance is due to:

A$)$ price items only.

B$)$ efficiency items only.

C$)$ both price and efficiency items.

D$)$ neither price or efficiency items.

In a standard costing system, overhead is applied to production on a basis of:

A$)$ the denominator hours chosen for the period.

B$)$ the budgeted hours for the normal production level of activity.

C$)$ the actual hours required to complete the output of the period.

D$)$ the standard hours allowed to complete the output of the period.

When the actual amount of a material used in production is greater than the standard amount

allowed for the actual output, the journal entry would include:

A$)$ debit to Materials Inventory; credit to Materials Efficiency Variance.

B$)$ debit to Work$-$In$-$Process Inventory; credit to Materials Efficiency Variance.

C$)$ debit to Materials Inventory; debit to Materials Efficiency Variance.

D$)$ debit to Work$-$In$-$Process Inventory; debit to Materials Efficiency Variance.

Which of the following income statement items is analyzed using the sales mix and the sales

quantity variances?

A$)$ Operating expenses

B$)$ Cost of goods sold

C$)$ Gross margin

D$)$ Contribution margin