Exam 16: Activity Based Costing

The standard rate of pay is $20 per direct labor hour.If the actual direct labor payroll was $117600 for 6000 direct labor hours worked the direct labor price (rate) variance is

Scorpion Production Company planned to use 1 yard of plastic per unit budgeted at $81 a yard.However the plastic actually cost $80 per yard.The company actually made 3900 units although it had planned to make only 3300 units.Total yards used for production were 3960.How much is the total materials variance?

A direct labor price standard is frequently called the direct labor efficiency standard.

The standard rate of pay is $12 per direct labor hour.If the actual direct labor payroll was $47040 for 4000 direct labor hours worked the direct labor price (rate) variance is

The formula for the materials price variance is

Ideal standards

Which one of the following statements is true?

If production exceeds normal capacity the overhead volume variance will be favorable.

Standard costs may be used by

Edgar Inc.has a materials price standard of $2.00 per pound.Six thousand pounds of materials were purchased at $2.20 a pound.The actual quantity of materials used was 6000 pounds although the standard quantity allowed for the output was 5400 pounds. Edgar Inc.'s materials quantity variance is

Edgar Inc.has a materials price standard of $2.00 per pound.Six thousand pounds of materials were purchased at $2.20 a pound.The actual quantity of materials used was 6000 pounds although the standard quantity allowed for the output was 5400 pounds. Edgar Inc.'s total materials variance is

The labor time requirements for standards may be determined by the

A standard differs from a budget because a standard

The investigation of materials price variance usually begins in the

The difference between a budget and a standard is that

The standard direct materials quantity does not include allowances for

provides input of historical costs to the standard setting process.

The standard direct labor rate per hour is

Which of the following statements is false?

Normal standards should be rigorous but attainable.