Exam 12: Standard Costs and Balanced Scorecard

Setting standard costs is relatively simple because it is done entirely by accountants.

The final decision as to what standard cost should be is the responsibility of

A standard cost is

A manufacturing company would include setup and downtime in their direct

The per-unit standards for direct labour are 3 direct labour hours at $15 per hour.If in producing 700 units, the actual direct labour cost was $31,175 for 2,150 direct labour hours worked, the total direct labour variance is

If the materials price variance is $600 F and the materials quantity and labour variances are each $450 U, what is the total materials variance?

The total overhead budget variance relates primarily to fixed overhead costs.

A debit to the Overhead Volume Variance account indicates that the standard hours allowed for the output produced was greater than the standard hours at normal capacity.

The direct materials quantity standard would NOT be expressed in

Which of the following could cause a debit balance in the direct material price variance accounts?

In a standard cost variance report,

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?

A company uses 40,000 kilograms of materials for which they paid $9.00 a kilogram.The materials price variance was $80,000 favourable.What is the standard price per kilogram?

Standard cost + price variance + quantity variance = budgeted cost.

A total materials variance is analyzed in terms of

The overhead volume variance relates only to

An advantage of standard costs is that they simplify costing of inventories and reduce clerical costs.

The direct materials quantity standard should

Standard cost cards are the subsidiary ledger for the Work in Process account in a standard cost system.

If actual costs are greater than standard costs, there is a(n)