Quantity standard is the quantity of material used to produce each a unit of output. Price standard is the unit price of materials that should be paidat a given level of activity. : The meaning of Quantity standard and Price standard.

Question

Want to see more full solutions like this?

Answer 1

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 10, Problem 1Q

To determine

Quantity standard is the quantity of material used to produce each a unit of output. Price standard is the unit price of materials that should be paidat a given level of activity.

:

The meaning of Quantity standard and Price standard.

Expert Solution & Answer

Explanation of Solution

Solution:

Quantity standard is units of direct material used to produce each unit of output. Difference between standard quantity allowed and actual quantity used result in Direct material usage variance.

Material Price Variance = (Standard price per unit - Actual Price per unit)×Actual material

Price standard is the unit price of materials to produce a given level of activity. Difference between standard cost and actual cost result in Direct material price variance.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Wanting to finalize a sale before year-end, on December 29, WR Outfitters sold to Bob a warehouse and the land for $140,000. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. a. What is Bob's basis in the warehouse and in the land if the appraised value of the warehouse was $100,750 and the appraised value of the land was $115,000? Bob's Basis Warehouse Land

On 17-Feb of year 1, Javier purchased a building, including the land it was on, to assemble his new equipment. The total cost of the purchase was $1,302,500; $295,000 was allocated to the basis of the land and the remaining $1,007,500 was allocated to the basis of the building. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. e. What would be the depreciation for 2024, 2025, and 2026 if the property were nonresidential property purchased and placed in service 17-Feb, 2007 (assume the same original basis)? Depreciation Year Expense 2024 2025 2026

What percentage of RBC’s total assets is held in investments (at October 31, 2020 and 2019)? refer to the 2020 financial statements and accompanying notes of Royal Bank of Canada (RBC). Note that RBC also holds a significant loan portfolio. What is the business reason for holding loans versus securities? Comment on how the investments are classified and presented on the balance sheet. What percentage of total interest income comes from securities (2020 and 2019)? Are there any other lines on the income statement or in OCI) relating to the securities? What percentage of net income (include any relevant OCI items) relates to securities (2020 versus 2019)? Calculate an approximate return on the investments in securities.

Answer 2

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 10, Problem 1Q

To determine

Quantity standard is the quantity of material used to produce each a unit of output. Price standard is the unit price of materials that should be paidat a given level of activity.

:

The meaning of Quantity standard and Price standard.

Expert Solution & Answer

Explanation of Solution

Solution:

Quantity standard is units of direct material used to produce each unit of output. Difference between standard quantity allowed and actual quantity used result in Direct material usage variance.

Material Price Variance = (Standard price per unit - Actual Price per unit)×Actual material

Price standard is the unit price of materials to produce a given level of activity. Difference between standard cost and actual cost result in Direct material price variance.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 10, Problem 1Q

To determine

Quantity standard is the quantity of material used to produce each a unit of output. Price standard is the unit price of materials that should be paidat a given level of activity.

:

The meaning of Quantity standard and Price standard.

Expert Solution & Answer

Explanation of Solution

Solution:

Quantity standard is units of direct material used to produce each unit of output. Difference between standard quantity allowed and actual quantity used result in Direct material usage variance.

Material Price Variance = (Standard price per unit - Actual Price per unit)×Actual material

Price standard is the unit price of materials to produce a given level of activity. Difference between standard cost and actual cost result in Direct material price variance.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 10, Problem 1Q

To determine

Quantity standard is the quantity of material used to produce each a unit of output. Price standard is the unit price of materials that should be paidat a given level of activity.

:

The meaning of Quantity standard and Price standard.

Expert Solution & Answer

Explanation of Solution

Solution:

Quantity standard is units of direct material used to produce each unit of output. Difference between standard quantity allowed and actual quantity used result in Direct material usage variance.

Material Price Variance = (Standard price per unit - Actual Price per unit)×Actual material

Price standard is the unit price of materials to produce a given level of activity. Difference between standard cost and actual cost result in Direct material price variance.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 10, Problem 1Q

To determine

Quantity standard is the quantity of material used to produce each a unit of output. Price standard is the unit price of materials that should be paidat a given level of activity.

:

The meaning of Quantity standard and Price standard.

Expert Solution & Answer

Explanation of Solution

Solution:

Quantity standard is units of direct material used to produce each unit of output. Difference between standard quantity allowed and actual quantity used result in Direct material usage variance.

Material Price Variance = (Standard price per unit - Actual Price per unit)×Actual material

Price standard is the unit price of materials to produce a given level of activity. Difference between standard cost and actual cost result in Direct material price variance.

Answer 6

Chapter 10, Problem 1Q

To determine

Quantity standard is the quantity of material used to produce each a unit of output. Price standard is the unit price of materials that should be paidat a given level of activity.

:

The meaning of Quantity standard and Price standard.

Expert Solution & Answer

Explanation of Solution

Solution:

Quantity standard is units of direct material used to produce each unit of output. Difference between standard quantity allowed and actual quantity used result in Direct material usage variance.

Material Price Variance = (Standard price per unit - Actual Price per unit)×Actual material

Price standard is the unit price of materials to produce a given level of activity. Difference between standard cost and actual cost result in Direct material price variance.

Answer 7

Chapter 10, Problem 1Q

To determine

Quantity standard is the quantity of material used to produce each a unit of output. Price standard is the unit price of materials that should be paidat a given level of activity.

:

The meaning of Quantity standard and Price standard.

Answer 8

Expert Solution & Answer

Explanation of Solution

Solution:

Quantity standard is units of direct material used to produce each unit of output. Difference between standard quantity allowed and actual quantity used result in Direct material usage variance.

Material Price Variance = (Standard price per unit - Actual Price per unit)×Actual material

Price standard is the unit price of materials to produce a given level of activity. Difference between standard cost and actual cost result in Direct material price variance.