Standard Costs: 1 Actual Costs: 8,000 ounds per unit: Pu an Southern Company is

Question

Standard Costs: 1 Actual Costs: 8,000 ounds per unit: Pu an Southern Company is ma e actual arvd standard di anufacturing 5,000 units for direct materials information e period is $0.78 per pound urchase price is $0.75 per pounds purd Based on the information, the mate chased and used; A) $390 favorable. B) $390 unfavorable C) $240 favorable D) $240 unfavorable. E) $150 unfavorable. erials usage variance is 5. Which of the following standards? 9 is NOT a potential source of quantitat A) Historical experience B) Input from operating personnel. C) Manufacturing overhead budget D) Engineering studies E) All of the above are so htial sources of quantitative standards 6 Which of the following costing? A) No unit cost calculations B) No need to dis N ng is NOT an advantage of standard product wFd weighted average methods of available unit cost information that can be used for pricing throughout the period because actual costs do not equiva S for each equivalent unit category in proces C) Lesenting for be Dj Provides readily capacity for control. nning inventory costs decisions at any time pe need to be known. E) All of the above are advantages of sta 7. Th onsibility for controlling the materials price variance usually belongs to which position'? A) The internal auditor. B) The CFO C) The purchasing agent D) The budget committee E) The CEO. Which statement is FALSE regarding price and usage variances? r labor, the price variance is usually called an efficiency variance A) Fo

Explanation / Answer

4.

So correct answer is B

5.

As all the options given are considered as potion source

so correct answer is E

6.

As all the options given are considered as advantage to standard product costing  

so correct answer is E

7.

As the pricing decision is taken by the budget commetiee for the budgting the price for the material

So the controlling of price is to be done by the budget commitee

So correct answer is D

Standard Material for actual production 5000*1.5 7,500 Pounds Direct material quantity variance=   ( Actual material - Standard material for acual production) *Standard rate Direct material quantity variance=   (8000-7500)* .78 390 UnFavorable

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