Question Description
In 100 words or more reply to statement below about standard costs
- Standard Costs are predetermined costs that are usually expressed on a per unit basis. (Standard Costs) I researched examples of standard costs and they are as follows: Direct Material Standard Costs- The total of materials required for a unit to be produced standard cost of direct materials. The requirements to produce one product is computed by multiplying standard cost of raw or unit material. Direct Labor Standard Cost-Direct Labor is the total cost of labor required to produce a unit of a product. Factory Overhead Standard Cost- The division of factory overhead is variable factory overhead and fixed factory overhead, factory overhead uses the same standard as direct labor and variable factory are based on direct labor hours. Variance Analysis- Variance can be determined by the cause due to a higher purchase of raw materials. Ideal Standards and Practice Standards- Require perfect performance without allowance for breakdowns of machines waste. Practical standard let normal downtimes for breakdowns and waste. (accountingverse)
In 100 words or more reply to statement below about standard costsStandard Costs are predetermined costs that are usually expressed on a per unit basis. (Standard Costs) I researched examples of standard costs and they are as follows: Direct Material Standard Costs- The total of materials required for a unit to be produced standard cost of direct materials. The requirements to produce one product is computed by multiplying standard cost of raw or unit material. Direct Labor Standard Cost-Direct Labor is the total cost of labor required to produce a unit of a product. Factory Overhead Standard Cost- The division of factory overhead is variable factory overhead and fixed factory overhead, factory overhead uses the same standard as direct labor and variable factory are based on direct labor hours. Variance Analysis- Variance can be determined by the cause due to a higher purchase of raw materials. Ideal Standards and Practice Standards- Require perfect performance without allowance for breakdowns of machines waste. Practical standard let normal downtimes for breakdowns and waste. (accountingverse)
