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1) If variable manufacturing overhead is applied based on direct labour-hours, it is not possible 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 balanced scorecards of companies in single industry should have same performance measures.

a. True
b. False

3. Manufacturing cycle efficiency (MCE) of 0.3 means that 70% of throughput time is spent on non-value-added activities.

a. True
b. False

4. When more hours of labour time are essential to complete job than standard permits, labour rate variance is unfavourable.

a. True
b. False

5. A favourable materials quantity variance would seem as debit in journal entry.

a. True
b. False

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