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The final decision as to what standard costs should be is the responsibility of What is a standard cost? The formula for the materials price variance is If the materials price variance is $3900 F and the materials quantity and labor variances are each $3000 U, what is the total materials variance? The standard predetermined overhead rate used in setting the standard overhead cost is determined by dividing Labor efficiency is measured by the Sunland Company produces a product that requires 2
- The final decision as to what standard costs should be is the responsibility of
- What is a standard cost?
- The formula for the materials price variance is
- If the materials price variance is $3900 F and the materials quantity and labor variances are each $3000 U, what is the total materials variance?
- The standard predetermined overhead rate used in setting the standard overhead cost is determined by dividing
- Labor efficiency is measured by the
- Sunland Company produces a product that requires 2.6 pounds of materials per unit. The allowance for waste and spoilage per unit is 0.3 pounds and 0.1 pounds, respectively. The purchase price is $2 per pound, but a 2% discount is usually taken. Freight costs are $0.1 per pound, and receiving and handling costs are $0.07 per pound. The hourly wage rate is $13 per hour, but a raise which will average $0.30 will go into effect soon. Payroll taxes are $1.20 per hour, and fringe benefits average $2.40 per hour. Standard production time is 1 hour per unit, and the allowance for rest periods and setup is 0.2 hours and 0.1 hours, respectively.
- If 10,000 pounds of direct materials are purchased for $9,300 on account and the standard cost is $.90 per pound, the journal entry to record the purchase is
- An overhead volume variance is calculated as the difference between normal capacity hours and standard hours allowed
Expert Solution
Question 1
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Your answer is correct. |
The final decision as to what standard costs should be is the responsibility of
| management. |
| the quality control engineer. |
| the managerial accountants. |
| the purchasing agent. |
Question 3
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Your answer is correct. |
What is a standard cost?
| Any amount that appears on a budget |
| The total amount that appears on the budget for product costs |
| The amount management thinks should be incurred to produce a good or service |
| The total number of units times the budgeted amount expected |
Question 4
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Your answer is correct. |
The formula for the materials price variance is
| (AQ × SP) – (SQ × SP). |
| (AQ × SP) – (SQ × AP). |
| (AQ × AP) – (AQ × SP). |
| (AQ × AP) – (SQ × SP). |
Question 5
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Your answer is correct. |
If the materials price variance is $3900 F and the materials quantity and labor variances are each $3000 U, what is the total materials variance?
| $900 F |
| $3000 U |
| $4350 U |
| $3900 F |
Question 6
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Your answer is correct. |
The standard predetermined overhead rate used in setting the standard overhead cost is determined by dividing
| budgeted overhead costs by an expected standard activity index. |
| budgeted overhead costs by actual activity. |
| actual overhead costs by actual activity. |
| actual overhead costs by an expected standard activity index. |
Question 7
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Your answer is correct. |
Labor efficiency is measured by the
| labor quantity variance. |
| labor rate variance. |
| materials quantity variance. |
| total labor variance. |
Question 8
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Your answer is correct. |
Sunland Company produces a product that requires 2.6 pounds of materials per unit. The allowance for waste and spoilage per unit is 0.3 pounds and 0.1 pounds, respectively. The purchase price is $2 per pound, but a 2% discount is usually taken. Freight costs are $0.1 per pound, and receiving and handling costs are $0.07 per pound. The hourly wage rate is $13 per hour, but a raise which will average $0.30 will go into effect soon. Payroll taxes are $1.20 per hour, and fringe benefits average $2.40 per hour. Standard production time is 1 hour per unit, and the allowance for rest periods and setup is 0.2 hours and 0.1 hours, respectively.
The standard direct labor rate per hour is
| $16.60. |
| $16.90. |
| $13.00. |
| $13.30. |
Question 9
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Your answer is correct. |
If 10,000 pounds of direct materials are purchased for $9,300 on account and the standard cost is $.90 per pound, the journal entry to record the purchase is
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Question 10
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Your answer is correct. |
An overhead volume variance is calculated as the difference between normal capacity hours and standard hours allowed
| divided by actual number of hours worked. |
| times the total predetermined overhead rate. |
| times the predetermined variable overhead rate. |
| times the predetermined fixed overhead rate. |
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