1. If variable manufacturing overhead is applied based on direct labor-hours, it is impossible to have favourable labour efficiency variance and unfavourable variable overhead efficiency variance for same period.
a. True
b. False
2. To make sure comparability, all of the balanced scorecards of companies within a single industry must have the same performance measures.
a. True
b. False
3. A manufacturing cycle efficiency (MCE) of 0.3 means that 70% of throughput time is spent on non-value-added activities.
a. False
b. True
4. When more hours of labor time are essential to complete a job than standard allows, labor rate variance is unfavorable.
a. True
b. False
5. A favorable materials quantity variance would show as a debit in a journal entry.
a. True
b. False