Quantity Variances for Direct Cost Categories (Direct Materials and Direct

question 78

Multiple Choice

Quantity variances for direct cost categories (direct materials and direct labor) are based on differences between the actual inputs used and the standard inputs allowed for the actual output achieved. A key difference in the analysis of quantity variances for direct cost categories and the analysis of the efficiency variance for variable overhead is:

• A) An efficiency variance for variable overhead cannot be calculated.
• B) The flexible-budget variance for variable overhead is always equal to the efficiency variance for variable overhead.
• C) The efficiency variance for variable overhead is based on the cost effectiveness in using the cost-allocation base.
• D) The flexible-budget variance for variable overhead is always equal to the spending variance for variable overhead.
• E) There is no key difference between the analysis of quantity variances for direct cost categories and the analysis of the efficiency variance for variable overhead; they should be evaluated in exactly the same manner.

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Definitions:

Bright Light

A high-intensity illumination that can influence biological processes, mood, and circadian rhythms in humans and other organisms.

Paradoxical Sleep

Another term for REM (Rapid Eye Movement) sleep, a sleep stage characterized by vivid dreaming, increased brain activity, and temporary muscle paralysis.

Voluntary Muscles

Muscles that are under conscious control, used in actions such as speaking, walking, and grabbing objects.

SCN

Stands for the Suprachiasmatic Nucleus, a small region in the brain that regulates the circadian rhythms, including sleep-wake cycles.