Exam 12: Standard Costs and Balanced Scorecard

Use the following information for questions Bridgeware Company has a materials price standard of $2.50 per kilogram.Four thousand kilograms of materials were purchased at $2.40 a kilogram.The actual quantity of materials used was 3,500 kilograms, although the standard quantity allowed for the output was 3,400 kilograms. -Bridgeware Company's total materials variance is

Allowance for spoilage is part of the direct

Standard costs may be used by

A company uses 3,150 kilograms of materials and exceeds the standard by 150 kilograms.The quantity variance is $900 unfavourable.What is the standard price?

If the standard hours allowed are less than the standard hours at normal capacity, the volume variance

If a company is concerned with the potential negative effects of establishing standards, they should

The overhead volume variance relates only to

Ideal standards

The standard number of hours that should have been worked for the output attained is 8,000 direct labour hours and the actual number of direct labour hours worked was 8,400.If the direct labour price variance was $8,400 unfavourable, and the standard rate of pay was $18 per direct labour hour, what was the actual rate of pay for direct labour?

An unfavourable materials quantity variance would occur if

An overhead fixed volume variance is calculated as the difference between normal capacity hours and standard hours allowed

Normal standards

It is possible that a company's financial statements may report inventories at

The difference between fixed overhead budgeted and overhead applied is the

A managerial accountant 1.does not participate in the standard setting process. 2.provides knowledge of cost behaviours in the standard setting process 3.provides input of histarical costs to the standard setting process.

A company purchases 130,000 kilograms of materials.The materials price variance is $26,000 favourable.What is the difference between the standard and actual price paid for the materials?

The two levels that standards may be set at are

The final decision for setting standard costs should be is the responsibility of

The total variance is $10,000 favourable.The total materials variance is $4,000 favourable.The total labour variance is twice the total overhead variance, both which are favourable.What is the total overhead variance?

The difference between a budget and a standard is that