chapter 9
The standard quantity allowed of an input per unit multiplied by the standard price of the input
standard cost per unit
A detailed listing of the standard amounts of inputs and their costs that are required to produce on unit of a specific product
standard cost card
T/F: An unfavorable materials quantity variance occurs when the actual quantity used in production is less than the standard quantity allowed for the actual output of the period
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T/F: If variable manufacturing overhead is applied based on direct labor hours, it is impossible to have a favorable labor rate variance and unfavorable variable overhead rate variance for the same period
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T/F: In general, the production manager is responsible for the materials price variance
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T/F: The standard labor rate per hour should not include any employment taxes
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T/F: The variable overhead efficiency variance measures the difference between the actual level of activity and the standard activity allowed for the actual output, multiplied by the fixed part of the predetermined overhead rate
f
The type of standard that should be used in developing standards costs
practical standard
A variance that is computed by taking the difference between the actual price and the standard price and multiplying the result by the actual quantity of input
price variance
A variance that is computed by taking the difference between the actual quantity of the input used and the amount of the input that should have been used for the actual level of output and multiplying the result by the standard price of input
quantity variance
T/F: A quantity standard indicates how much of an input should be used to make a unit of product or provide a unit of service
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T/F: Material price variances are often isolated at the time materials are purchased, rather than when they are placed into production, to facilitate earlier recognition of variances
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T/F: The labor efficiency variance is labeled favorable if the actual hours used is less than the standard hours allowed for the actual output
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T/F: The standard quantity or standard hours allowed refers to the amount of the input that should have been used to produce the actual output of the period
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