Asked by Emily Gellis on May 05, 2024
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The standard unit cost is used in the calculation of which of the following variances? Materials Price Variance Materials Quantity Variance \begin{array}{l}\text { Materials Price Variance } & \text { Materials Quantity Variance } \\\end{array} Materials Price Variance Materials Quantity Variance
A) No No \begin{array}{l}&&&&\text { No } & &&&&&&&&&\text { No } \\\end{array} No No
B) No Yes \begin{array}{l}&&&&\text { No } &&&&&&&&&& \text { Yes } \\\end{array} No Yes
C) Yes No \begin{array}{l}&&&&\text { Yes } &&&&&&&&&& \text { No } \\\end{array} Yes No
D) Yes Yes \begin{array}{l}&&&&\text { Yes } &&&&&&&&&& \text { Yes }\end{array} Yes Yes
Standard Unit Cost
The fixed cost calculated to produce one unit of a product, including labor, materials, and overhead.
Materials Price Variance
Refers to the difference between the actual cost of materials and the expected (or standard) cost.
Materials Quantity Variance
A measure of the difference between the actual quantity of materials used in production and the expected (or standard) quantity, indicating efficiency.
- Learn to identify and compute discrepancies in the quantities and costs of materials.
- Achieve the capability to calculate labor's quantity, pricing, and total budget discrepancies.
Verified Answer
Learning Objectives
- Learn to identify and compute discrepancies in the quantities and costs of materials.
- Achieve the capability to calculate labor's quantity, pricing, and total budget discrepancies.
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