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1. The standards that allow for no machine breakdowns or other work interruptions and that require peak efficiencyat all times are referred to as:A) normal standards.B) ideal standards.C) practical standards.D) budgeted standards.2. Servantez Manufacturing Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company’s cost formula for variable overhead is $9.50 per MH. During the month, the actual total variable overhead was $51,300 and the actual level of activity for the period was 5,700 MHs. What was the variable overhead rate variance for the month?A) $2,850 favorableB) $2,850 unfavorableC) $300 unfavorableD) $300 favorable3. Management by exception means that a manager’s attention is directed toward those parts of the organization where things are not proceeding according to plans.A) TrueB) False4. All cost variances should be considered exceptions that require the attention of management.A) TrueB) False
1. The standards that allow for no machine breakdowns or other work interruptions and thatrequire peak efficiencyat all times are referred to as:A) normal standards.B) ideal standards.C)…
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