ACC 560 WEEK 8 QUIZ 6 – PRODUCT DESCRIPTION

ACC 560 WEEK 8 QUIZ 6
PRODUCT DESCRIPTION

If actual direct materials costs are greater than standard direct materials costs, it means that

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The standard direct materials quantity does not include allowances for

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
Standard Budgeted

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 process.
3. provides input of historical costs to the standard setting process.

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 product is

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 materials variance?

Unfavorable materials price and quantity variances are generally the responsibility of the
Price Quantity