Direct materials quantity per unit Direct materials price per pound Direct labor hours per unit Direct labor rate per hour Normal or Expected Standards Complete this question by antasis 4 lbs. per unit $ 12 per lb. 5 hours per unit $ 18 per hour Ideal Standards 3 lbs. per unit $10 per lb 6 hours per unit $15 per hour a. Compute the standard cost per finished unit for the normal or expected standards and for the ideal standards. b. Managers using normal standards would expect unfavorable variances on a regular basis. Is this statement true or false?
Direct materials quantity per unit Direct materials price per pound Direct labor hours per unit Direct labor rate per hour Normal or Expected Standards Complete this question by antasis 4 lbs. per unit $ 12 per lb. 5 hours per unit $ 18 per hour Ideal Standards 3 lbs. per unit $10 per lb 6 hours per unit $15 per hour a. Compute the standard cost per finished unit for the normal or expected standards and for the ideal standards. b. Managers using normal standards would expect unfavorable variances on a regular basis. Is this statement true or false?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:Direct materials quantity per unit
Direct materials price per pound
Direct labor hours per unit
Direct labor rate per hour
a. Compute the standard cost per finished unit for the normal or expected standards and for the ideal standards.
b. Managers using normal standards would expect unfavorable variances on a regular basis. Is this statement true or false?
Complete this question by entering your answers in the tabs below.
Normal or Expected
Standards
4 lbs. per unit
$ 12 per lb.
5 hours per unit
$ 18 per hour
Normal standard cost
Ideal standard cost
Required A Required B
(
Compute the standard cost per finished unit for the normal or expected standards and for the ideal standards.
per unit
per unit
Regisired A
Ideal Standards
3 lbs. per unit
$10 per lb
6 hours per unit
$15 per hour
Required B >
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