Exam 10: Standard Costs for Control: Direct Material and Direct Labour

Flexer Company Ltd has set the following standards for the production of one unit of product.Normal production each month is 500 units.During June,actual production amounted to 420 units.All direct material was purchased and used this month.Actual cost amounted to: Determine the direct material quantity variance for June production.

A control system comprises:

When using a standard costing system for recoding purposes,most companies will close the variance accounts by debiting finished goods.

The manager generally responsible for the direct material price variance is the:

A material quantity variance is shown by:

Cultco Company Ltd has set the following direct material standards per unit of product: 2.5 kg @ $3.00 per kg;$7.50 per unit.During April,actual direct material purchased and used amounted to 8000 kg at a cost of $3.10 per kg.Actual production amounted to 3000 units.Determine the total material variance.

Which of the following statements is/are true?

When using the statistical control chart to investigate variances:

Which of the following statements is/are true?

A cost variance is:

The following data relates to QA firm: Cost standards: Actual results: 7 800 units were produced Calculate the direct material quantity variance.

Which of the following statements about perfection standards is false?

Which of the following statements regarding standard costing is/are true?

Jay Bole is in the process of developing a standard for the labour cost of one unit of Product X.According to the design manual,it takes a skilled worker 30 minutes to produce one unit of Product X when the workshop is operating at peak condition.However,Product X is quite complex and even a skilled worker operating in high efficiency often needs another 5 minutes to adjust the tools,re-oil the machine and rework some aspects of the product.A skilled worker is paid $30 per hour,while the company pays 20% on-costs on top of this.Jay decides to develop a perfection standard.The standard labour cost for one unit of Product X is:

Companies sometimes develop standards based on historical data.Which of the following statements about this approach is correct?

Which of the following statements is false regarding perfection standards?

Standard costs are used for evaluating performance and controlling costs but they are never used for costing products.

A standard cost is:

The following data relates to QA firm: Cost standards: Actual results: 7 800 units were produced: Calculate the labour efficiency variance.

Which of the following statements is false?