Which of the following variances cannot occur together during the same accounting period?
A) Unfavorable labor rate variance and favorable labor efficiency variance.
B) Unfavorable labor efficiency variance and favorable material quantity variance.
C) Favorable labor rate variance and unfavorable total labor variance.
D) Favorable labor efficiency variance and favorable material quantity variance.
E) None of the answers is correct, because all of these variance combinations are possible.

Question

Quizplus · Accepted Answer

All the combinations listed can occur together because they affect different aspects of production costs. Labor rate and efficiency variances focus on labor costs, while material quantity variance focuses on material costs. Total labor variance is a combination of labor rate and efficiency variances, so it's possible to have a mix of favorable and unfavorable variances within these categories.

Which of the Following Variances Cannot Occur Together During the Same