Which of the following variances are most similar with respect to the manner in which they are calculated?
A) Labor rate variance and labor efficiency variance.
B) Material price variance and material quantity variance.
C) Material price variance, material quantity variance, and total material variance.
D) Material price variance and labor efficiency variance.
E) Material quantity variance and labor efficiency variance.

Question

Quizplus · Accepted Answer

Both material quantity variance and labor efficiency variance are calculated based on the difference between actual and standard quantities used, multiplied by the standard cost or rate.

Which of the Following Variances Are Most Similar with Respect