Which of the Following Is True

Multiple Choice

Which of the following is true?

A) In developing a standard cost for direct materials, a price factor and a quantity factor must be considered.
B) A direct labour price standard is frequently called the direct labour efficiency standard.
C) The standard predetermined overhead rate must be based on direct labour hours as the standard activity index.
D) The direct materials price standard should be based on the production department's best estimate of the cost of raw material.