Question

24. Standard costing can be used to apply costs for which of the following? Select one Direct Materials b. Direct Labor Indirect Materials and Indirect Labor c d. Factory Utilities All of the above can be applied using standard costing a. Tab e 25. Reasons for using standard costing include their usefulness in: Select one: Caps L a. Preparing flexible budgets b. Preparing master budgets c Establishing selling prices d. Preparing performance reports e All of the above Shift 1 26. The standard direct material cost is equal to: Select one: a. Standard quantity x Actual price b. Actual quantity x Standard price c Actual quantity x Actual price d. Standard quantity x Standard price e None of the above Ctrt 27. Which of the following accurately represents the "split cost" for analyzing the direct materials flexible budget variance? Select one: a Actual Quantity x Standard Price b. Actual Quantity x Actual Price c Standard Quantity x Actual Price d. Standard Quantity x Standard Price e. None of the above 28. The difference between the split cost and the actual cost for direct materials is called the: Select one: a. Materials Efficiency Variance b. Materials Usage Variance c Materials Budget Variance d. Materials Price Variance e. None of the above 5

Answer 1

24)

The correct answer is e) All of the above can be applied using standard costing

Supporting explanations:

Standard costing system is used to Direct Materials, Direct Labor, indirect materials & labor, (variable and fixed overheads) and factory supplies to compare with the actual results in order to calculate the variances in terms of favorable and unfavorable.

Therefore, standard costing is used for all of the categories mentioned, hence, the correct answer is e.