Ch. 10 Learnsmart Quiz

The materials price variance is generally the responsibility of the _____ manager

purchasing

The standard rate per hour includes:

-Employment taxes -Fringe benefits -Direct labor rate per hour

Direct material standards: -Should be based on input from production and purchasing managers. -Should be prepared for both direct and indirect materials. -Include the costs of employment taxes. -Are based on standard price and quantity.

-Should be based on input from production and purchasing managers. -Are based on standard price and quantity.

When setting direct labor standards: -Time and motion studies may be used -The production manager should be consulted -It is best to use "tight but attainable" standards -It is important to consult the purchasing manager

-Time and motion studies may be used -The production manager should be consulted -It is best to use "tight but attainable" standards

Which of the following statements are true? -Standards are only used in managerial accounting. -When actual results depart significantly from the standard, the reasons why should be investigated. -Standards provide information for measuring performance. -The purpose of standards is to assess blame and responsibility

-When actual results depart significantly from the standard, the reasons why should be investigated. -Standards provide information for measuring performance.

True or False: the standard hours per unit includes both direct and indirect labor hours

False (it includes Direct Labor hours only)

How much should be paid for each unit of an input is specified by a ______ standard.

Price

How much input should be used to produce a product or provide a service is a _____ standard.

Quantity

Material requirements plus an allowance for normal inefficiencies are added together to determine the ______ _______ of a direct material per unit of output.

Quantity Standard

The final, delivered price that should be paid for each unit of direct materials is the _______ price per unit of materials.

Standard

The standard cost for ______ manufacturing overhead is computed the same way as the standard cost for direct labor. -Fixed -Variable & Fixed Variable

Variable

The standard quantity or hours & the standard price or rate required to produce a unit of a specific product is shown on a standard ______ ______

cost card