Chapter 8, Problem 7E

A.

To determine

Standard cost:

In the accounting records, the term standard cost refers to the practice of replacement of an expected cost for an actual cost. Then the difference between the expected costs, and actual costs showing the variance are also recorded periodically. A standard costs is also known as target cost or predetermined cost.

The standard unit materials cost per pound for a standard batch.

B.

To determine

The direct materials quantity variance for batch K-111.