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WorksheetsStandard Costing
Total questions: 15
Worksheet time: 14mins
_____ cost is decided scientifically.
Actual
Standard
Flexed
Marginal
_____ cost is used for controlling cost.
Contract Cost
Process Cost
Marginal Cost
Standard Cost
_____ is a difference between standard cost and actual cost.
Cost Variance
Favourable
Adverse
Neutral
A manager can be blamed for _____ adverse variance.
controllable
non controllable
improvement in quality
reduction in cost
_____ cost represents what the cost should be.
Standard
Process
Contract
Marginal
............. can be achieved under efficient operating conditions
Ideal standards
Attainable standards
Margin standards
variance standards
............ only work under perfect conditions.
Ideal standards
Attainable standards
Variance standards
Margin standards
Why adopt a standard cost system?
To improve performance measures
To give manager more information by decomposing total variances into price & usage variances
To use unit cost system that is readily available in pricing
To make a simple decision
Who is responsible for a materials price variance?
The Purchasing Agent.
The Production Manager
The Production & Maintenance Managers
Supervisor
Who is responsible for a labor efficiency variance?
The Purchasing Agent.
The Production Manager
The Production & Maintenance Managers
Supervisor
Who is responsible for a materials usage variance?
The Purchasing Agent.
The Production Manager
The Production & Maintenance Managers
Supervisor
Determine the material price variance?
RM2425 (Favourable)
RM2425 (Unfavourable)
RM196,425 (Favourable)
RM195,425 (Unfavourable)
Determine the material price variance.
RM2,500 (Favourable)
RM2,500 (Unfavourable)
RM2,400 (Favourable)
RM2,400 (Unfavourable)
Determine the labour rate variance.
RM8,500 (Favourable)
RM8,500 (Unfavourable)
RM68,000 (Favourable)
RM68,000 (Unfavourable)
In producing product ZZ, 14,800 direct labor hours were used at a rate of $8.20 per hour. The standard was 15,000 hours at $8.00 per hour. Based on these data, the direct labor:
(a)quantity variance is $1,600 favorable.
(b)quantity variance is $1,600 unfavorable.
(c)price variance is $3,000 favorable.
(d)price variance is $3,000 unfavorable.
