Question

Planning to purchase materials in bulk amounts will affect the standard price for direct materials.

True

False

Health insurance and other benefits are part of the calculation of the standard price for direct labor.

True

False

Variable overhead is generally combined with fixed overhead in standard costing.

True

False

The flexible budget variance is equal to the difference between actual costs incurred and budgeted costs.

True

False

Answer 1

rate positively .. let me know if you need any clarification..

ans 1

Statement is TRUE : Planning to purchase materials in bulk amounts will affect the standard price for direct materials.

Bluk purchase will get discount and therefore price will be lower than standard price for material

ans 2

Statement is TRUE : Health insurance and other benefits are part of the calculation of the standard price for direct labor.

Health insurance and other benefit are paid to employee and part of direct labor cost

ans 3

Statement Is FALSE : Variable overhead is generally combined with fixed overhead in standard costing

Variable overhead and fixed overhead are seprately computed for standard costing.

ans 4

Statement is FALSE : The flexible budget variance is equal to the difference between actual costs incurred and budgeted costs

Flexible budget variance is actual cost incurred vs standard cost of actual output.