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True or False: Participative budgeting seeks to motivate employees. True or False: A variable overhead efficiency...

True or False: Participative budgeting seeks to motivate employees.

True or False: A variable overhead efficiency variance could be caused by using poor quality material that needs more labor time to meet production standards.

True or False: The direct labor efficiency variance is the difference between the standard hours allowed for the output achieved and the actual hours multiplied by the actual labor rate.

True or False: The budget committee in most organizations consists of the CFO, Vice-President of Sales, and Vice-President of Production.  

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Answer #1

Answer is as follows:

1. True, Participative budgeting helps to motivate employess to work towards achievement of organisation's goals.

2. True, using a poor quality materails leads to excess overtime of lobour in order to bring them to the expected standards which unfavourable variabe overhead efficiency variance.

3. False, The direct labor efficiency variance is the difference between the standard hours allowed for the output achieved and the actual hours multiplied by the standard labor rate. (actual hours - standard hours) * standard rate.

4. False, Along with those mentioned above, it also contains Vice-Prsident of Purchasing and the Controller.

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