1 answer

Checking to see if my highlighted answers are correct???? __d__ 1. What is a standard cost?...

Question:

Checking to see if my highlighted answers are correct????

__d__ 1. What is a standard cost?

a.   The total number of units times the budgeted amount expected

b.   Any amount that appears on a budget

c.   The total amount that appears on the budget for product costs

d.   The amount management thinks should be incurred to produce a good or service

__c__ 2. A standard cost is

a.   a cost which is paid for a group of similar products.

b.   the average cost in an industry.

c.   a predetermined cost.

d.   the historical cost of producing a product last year.

__c__ 3. The difference between a budget and a standard is that

a.   a budget expresses what costs were, while a standard expresses what costs should be.

b.   a budget expresses management's plans, while a standard reflects what actually happened.

c.   a budget expresses a total amount, while a standard expresses a unit amount.

d.   standards are excluded from the cost accounting system, whereas budgets are generally incorporated into the cost accounting system.

PART II — Direct Labor Standard (20 points)

Engines Done Right Co. is trying to establish the standard labor cost of a typical engine tune-up. The following data have been collected from time and motion studies conducted over the past month.

                     Actual time spent on the tune-up                 1.0 hour

                     Hourly wage rate                                          $16

                     Payroll taxes                                                10% of wage rate

                     Setup and downtime                                    10% of actual labor time

                     Cleanup and rest periods                            20% of actual labor time

                     Fringe benefits                                             25% of wage rate

Instructions

(a)     Determine the standard direct labor hours per tune-up

standard direct labor hours per tune-up = Actual time spent + Setup and downtime +          Cleanup and rest periods

standard direct labor hours per tune-up = 1 + 1*10% + 1*20%

standard direct labor hours per tune-up = 1.3 Hours

(b)     Determine the standard direct labor hourly rate.

         standard direct labor hourly rate = Hourly wage rate + Payroll taxes + Fringe benefits

         standard direct labor hourly rate = 16 + 10%*16 + 25%*16

         standard direct labor hourly rate = 21.60

(c)     Determine the standard direct labor cost per tune-up.

         standard direct labor cost per tune-up = standard direct labor hours per tune-up*standard     direct labor hourly rate

         standard direct labor cost per tune-up = 1.3*21.6

         standard direct labor cost per tune-up = $ 28.08

  (d)     If a tune-up took 1.5 hours at the standard hourly rate, what was the direct labor quantity variance?

        Direct labor quantity variance = (Actual Hour - Standard Hour) * Standard Rate

        Direct labor quantity variance = (1.50 - 1.30)*21.60

        Direct labor quantity variance = $ 4.32 Unfavorable


Answers

As per HOMEWORKLIB RULES we can answer only one question and if there are sub-parts of that question then maximum four sub-parts can be answered. Here I am answering all three question of part 1 question:

1. What is a standard cost?

The Answer is (d). The amount management thinks should be incurred to produce a good or service.

2. A standard cost is

The Answer is (c) a predetermined cost

A predetermined cost for the production of goods and services that serves as a benchmark against which to compare the actual cost.

3.

The difference between a budget and a standard is that

The Answer is (c) a budget expresses a total amount, while a standard expresses a unit amount.

.

Similar Solved Questions

1 answer
A firm can purchase a centrifugal separator​ (5-year MACRS​ property) for ​$21,000. The estimated salvage value...
A firm can purchase a centrifugal separator​ (5-year MACRS​ property) for ​$21,000. The estimated salvage value is ​$2,500 after a useful life of six years. Operating and maintenance​ (O&M) costs for the first year are expected to be ​$2,100. These​ O...
1 answer
Heart rates were measured in 2 groups of individuals. One group included individuals that had recently...
Heart rates were measured in 2 groups of individuals. One group included individuals that had recently had heart attacks. The other group included normal individuals. A t-test was performed. The calculated t = 7.04. The critical t at 7 degrees of freedom was: 2.36. What is the conclusion? significan...
1 answer
H,N. Py H,N. H,N ,C Cl P1 H,N H,N NH H2 NH, H, Compounds A-D are...
H,N. Py H,N. H,N ,C Cl P1 H,N H,N NH H2 NH, H, Compounds A-D are anti-cancer drugs in curren! cⅢical use or under investigation in trials. () Assign oxidation states to all of the platinum ions in molecules A-D (3 marks) () Describe the similar mechanism of action for compounds A-C accounting ...
1 answer
5. At the end of the day, the cash register's record shows $1,250, but the count...
5. At the end of the day, the cash register's record shows $1,250, but the count of cash in the cash register is $1,245. The correct entry to record the cash sales is...
1 answer
Inflation doesn't reduce purchasing power if ______
Inflation doesn't reduce purchasing power if ______. price of essential products, such as food and gasoline, don't increase too much it causes an increase in nominal wages it remains under 10% per year the Federal Reserve increases the money supply enough to offset it...
1 answer
The agency supervisor of a nonprofit organization wants to know how many individuals may receive financial...
The agency supervisor of a nonprofit organization wants to know how many individuals may receive financial assistance during the year. The organization has fixed costs of $600,000. They aid the unemployed by supplementing their incomes by $8,000 annually, while they seek new employment skills. The b...
1 answer
Probability FOR THE NEXT FOUR QUESTIONS (QUESTIONS 8-11) USE THE FOLLOWING INFORMATION The CEO of a...
Probability FOR THE NEXT FOUR QUESTIONS (QUESTIONS 8-11) USE THE FOLLOWING INFORMATION The CEO of a cosmetic company claims that 75% of her current customers are satisfied with the products they buy. To test her claim, a research group surveyed 350 customers, using simple random sampling. The resul...
1 answer
The Extra Surplus Company's Balance Sheet for December 31, 2017 and the Income Statement for 2018...
The Extra Surplus Company's Balance Sheet for December 31, 2017 and the Income Statement for 2018 are shown below. Extra Surplus Company Balance Sheet December 31, 2017 Assets Cash Accounts Receivable Inventory Property and Equipment, Net $ 20,000 10,000 24,000 40,000 $94,000 Liabilities and Sto...
1 answer
Describe how the nonconsequential theory of ethics applies in this case.
describe how the nonconsequential theory of ethics applies in this case....
1 answer
Explain the two death benefit options that are available to you when you purchase a universal...
Explain the two death benefit options that are available to you when you purchase a universal life or current assumption policy.   Who bears the investment risk in variable life and universal variable life policies? How does this differ from investment risks borne by the buyer of a uni...
1 answer
Cant figure out this hw question HW Score: 79.51%, 79.51 or 10 of 17 (16 complete...
cant figure out this hw question HW Score: 79.51%, 79.51 or 10 of 17 (16 complete Question Help a company that produces high quality cross-country bicycles. Groovy Bles parties in a s y chain that consists of suppliers, manufacturers, distributors, and b e shops. For several from suppliers in the s...
1 answer
0 The recommended number of hours of sleep per night is 8 hours, but everybody "known"...
0 The recommended number of hours of sleep per night is 8 hours, but everybody "known" that the average college student sieeps less than 7 hours. The number of hours sletast night by 10 randomly selected colege stadens is wad below. Complete tre flowing hypothesis test ne ? . 7,Ma: ? <7,a...
1 answer
4. Given the production function Q=96K 03107, find the MPPx and MPP, functions. Is MPPK a...
4. Given the production function Q=96K 03107, find the MPPx and MPP, functions. Is MPPK a function of K alone, or of both K and L? What about MPP,?...
6 answers
Which of the following has a surface covered with coffers
4. Which of the following has a surface covered with coffers?a. Bathb. Apsec. Domed. ArchI know it's not A, but I'm not sure what it is.9. The Hellenistic style was exemplified ina. Seated Boxerb. geometric casesc. Kourosd. ClassicalNot sure about this one either...15. Relief sculptures in a...
1 answer
Determine the molar solubility ( ? ) of Ag2CO3 in a buffered solution with a pH...
Determine the molar solubility ( ? ) of Ag2CO3 in a buffered solution with a pH of 3.930 using the systematic treatment of equilibrium. ?sp(Ag2CO3)=8.46×10−12 ; ?a1(H2CO3)=4.45×10−7 ; ?a2(H2CO3)=4.69×10−11 ....
1 answer
Question 1 Given the following first order IVP: -y=e", y(0) = 0 1. Determine if the...
Question 1 Given the following first order IVP: -y=e", y(0) = 0 1. Determine if the equation is linear, separable and/or Bernoulli (0.5 pt] 2. Solve the IVP using one of applicable methods studied (integrating factor, separation of variable and/or substitution of variables) (2 pt] 3. Now solve i...
1 answer
Describe how an organization’s strategy development can result in a clear direction for managing quality. How...
Describe how an organization’s strategy development can result in a clear direction for managing quality. How might differences in strategy result in different approaches to thinking about, measuring, or improving quality?...
1 answer
What is #cos^2theta-sectheta # in terms of #sintheta#?
What is #cos^2theta-sectheta # in terms of #sintheta#?...
1 answer
10/700 Resources Feedback The skin temperature of a nude person is 32.0°C and the surroundings are...
10/700 Resources Feedback The skin temperature of a nude person is 32.0°C and the surroundings are at 23.0°C. The emissivity of skin is 0.915, and the surface area of the person is 1.55 m² What is the rate Pat which energy radiates from the person? P= 78.57 What is the net energy loss A...