7·The standard quantity per unit for direct materials should not include an allo
ID: 2523349 • Letter: 7
Question
7·The standard quantity per unit for direct materials should not include an allowance for waste. True False 8. Ideal standards should be used for forecasting and planning. False 9. The standard cost per unit is computed by multiplying the standard quantity or hours by the standard price or rate. True False 10. Standard costs greatly increase the complexity of the bookkeeping process. True False 11. When computing standard cost variances, the difference between actual and standard price multiplied by actual quantity yields a(n): A. combined price and quantity variance. B. efficiency variance. C. price variance. D. quantity variance. looual wocua(sd.xova 12. The general model for calculating a price variance is: A. actual quantity of inputs x (actual price- standard price). B. standard price x (actual quantity of inputs-standard quantity allowed for output). C. (actual quantity of inputs at actual price) - (standard quantity allowed for output at standard price) D. actual price x (actual quantity of inputs-standard quantity allowed for output).Explanation / Answer
7.The standard quantity of direct materials is the quantity of direct materials are required to complete one unit of product. It includes allowances for normal waste
Answer: True
8.For forecasting and planning a practical standard should be used that have allowances made for normal wastage, workers rest and machinery breakdown etc.
Hence Ideal standard under best circumstances are normally not used.
Answer:
False
9.Standard cost of material per unit=Standard Quantity of materials *Standard Price
Standard cost of labor=Standard labor hour*Standard labor Rate
Answer:
True
10.Standard costing generally increases book keeping process:
Answer: True
11.Price Variance=Actual Quantity*(Standard Price-Actual Price)
Answer:
C. Price variance
12.
Answer:A
The general model for calculating price variance:
Actual Quantity of input*(Actual Price-Standard Price)
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