1) The difference between the actual labor hours and the standard labor hours, multiplied by the standard labor rate is the:

direct labor efficiency variance.

direct labor rate variance.

direct labor spending variance.

direct labor volume variance.

2) In a standard cost system, overhead is applied per unit by multiplying the ___________ overhead rate times the ____________ quantity of the cost driver.

actual, actual

standard, actual

actual, standard

standard, standard

3) When completing a variance analysis, we describe variances as ____________ or _________.

positive or negative

favorable or unfavorable

good or bad

ideal or less-than-ideal