STAYER ACC 560 Week 8 Quiz 6 .pdf
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STAYER ACC 560 Week 8 Quiz 6 (Chapter 11) NEW
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If actual direct materials costs are greater than standard direct
materials costs, it means that
The standard direct materials quantity does not include
Marburg Co. expects direct materials cost of $6 per unit for
100,000 units (a total of $600,000 of direct materials costs).
Marburg’s standard direct materials cost and budgeted direct
materials cost is
If the labor quantity variance is unfavorable and the cause is
inefficient use of direct labor, the responsibility rests with the
A managerial accountant
1. does not participate in the standard setting process.
2. provides knowledge of cost behaviors in the standard setting
3. provides input of historical costs to the standard setting
Using standard costs
An unfavorable materials quantity variance would occur if
Hofburg’s standard quantities for 1 unit of product include 2
pounds of materials and 1.5 labor hours. The standard rates
are $2 per pound and $7 per hour. The standard overhead rate
is $8 per direct labor hour. The total standard cost of Hofburg’s
Scorpion Production Company planned to use 1 yard of plastic
per unit budgeted at $81 a yard. However, the plastic actually
cost $80 per yard. The company actually made 3,900 units,
although it had planned to make only 3,300 units. Total yards
used for production were 3,960. How much is the total
Unfavorable materials price and quantity variances are
generally the responsibility of the