Which of the following variances are most similar with respect to the manner in which they are calculated? Multiple Choice Labor rate variance and labor efficiency variance. Material price variance and material quantity variance. Material price variance, material quantity variance, and total material variance. Material price variance and labor efficiency variance. Material quantity variance and labor efficiency variance.

Materials quantity variance and labor efficiency variance.

Explanation:

Material quantity variance is defined as the difference that exists between the actual amount of a material that is used in production and the expected amount to be used. It measures the efficiency with which a raw material is converted into product.

MQV is calculated by multiplying standard price of material by difference between standard quantity and actual quantity.

Labour efficienct rate on the other hand measure efficiency of using labour.

It is calculated by multiplying standard labour rate with difference between standard labour amount and actual labour amount.