21.A favorable variance occurs when actual costs are less than standard costs.
22.A difference between a standard cost and an actual cost would be recorded in the Work in Process account.
23.A variance is said to be unfavorable when actual costs exceed standard costs.
24.An unfavorable cost variance will be debited to a cost variance account.
25.A spending variance results from incurring more overhead costs than allowed for the actual level of activity achieved.
26.The presence of fixed costs in manufacturing overhead causes the actual amount of manufacturing overhead per unit of output to vary, depending on the actual production volume attained.
27.It is possible for the overhead volume variance to be favorable and the overhead spending variance to be unfavorable.
28.External auditors are often called upon to evaluate cost variances.
29.In evaluating cost variances, the accounting department determines whether variances are favorable or unfavorable.
30.The company's CEO is the only person who analyzes costs variances.
31.The purchasing manager is often included in evaluating cost variances.
32.A total cost variance for materials can be caused by differences in the quantity used, or in the price paid, but not by both.