Which of the following statements is NOT correct?

a. 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.

b. 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 variable part of the predetermined overhead rate.

c. 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.

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

2) Which of the following statements is correct?

a. 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.

b. When more hours of labor time are necessary to complete a job than the standard allows, the labor efficiency variance is unfavorable.

c. If demand is insufficient to keep everyone busy and workers are not laid off, a favorable (F) labor efficiency variance often will be a result.

d. If variable manufacturing overhead is applied based on direct labor-hours, it is impossible to have a favorable labor rate variance and unfavorable variable overhead rate variance for the same period.