1. Which variances discussed in this chapter would be directly affected by a learning curve phenomenon?
2. Will overtime premiums affect direct labor variances? If so, which ones?
3. Should the performance of a division be deemed less than satisfactory if all of its variances are "unfavorable"? Explain.
4. Explain what is meant by the term "management by exception." What is the relationship between the process of standard cost variance analysis and management by exception?