QUESTION 1

1. The difference between the standard and actual prices paid for resources purchased is a(n):
2. efficiency variance.
3. price variance.
4. volume variance.
5. efficiency variance.

0.5 points

QUESTION 2

1. Underapplied and overapplied overhead arise because
2. overhead applied to the product during the year, based on an estimated overhead rate, is compared with actual overhead incurred
3. none of the above
4. the usage of the overhead allocation base by the product, e.g. machine hours is an estimate
5. the overhead rate and the amount of the allocation base used by the product are both estimates

0.5 points

QUESTION 3

1. Revenue variances can be broken down into:
2. sales spending variance and sales efficiency variance.
3. sales price variance and sales efficiency variance.
4. sales spending variance and sales volume variance.
5. sales price variance and sales volume variance.