If the actual labor hours worked exceed the standard labor hours allowed

If the actual labor hours worked exceed the standard labor hours allowed

26.       If the actual labor hours worked exceed the standard labor hours allowed, what type of variance will occur?

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A)  Favorable labor efficiency variance.

B)        Favorable labor rate variance.

C)        Unfavorable labor efficiency variance.

D)        Unfavorable labor rate variance.

E)   None of the above.

27.       Which of the following statements is true?

One of the weaknesses of budgets is that they are of little value in uncovering potential bottlenecks in an organization

One of the advantages of a self-imposed budget is that the person directly involved in an activity is more likely to be in a position to make good budget estimates.

A)  Statement I

B)  Statement II

C)  Neither statement is true.

D)  Both statements are true.

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