ECONOMICS

Detailed explanation-1: -The correct answer is b. When the material is purchased. At the time of purchase of direct materials, information about the actual quantity and the actual price is first available. So, direct material price variance is firstly recognized at that point in time.

Detailed explanation-2: -C. If the actual labor hours worked exceeded standard hours allowed is expressed as unfavorable labor efficiency variance.

Detailed explanation-3: -Unfavourable labour rate variance.

Detailed explanation-4: -10-8 The materials price variance is usually the responsibility of the purchasing manager. The materials quantity and labor efficiency variances are usually the responsibility of production managers and supervisors.

Detailed explanation-5: -What type of direct material variances for price and quantity will arise if the actual number of pounds of materials used exceeds standard pounds allowed but actual cost was less than standard cost? Labor rate variance.