Chapter 26, Problem 6Q

(a)

To determine

Direct Material: Direct material refers to those materials which are used in the manufacture of the product. As these materials are directly associated with the product, they are named as direct materials. This also includes the spoilages that are occurred during the manufacture.

To explain: The factors in setting the direct material price standard.

(b).

To determine

To explain: The factors in setting the direct material quantity standard.