Question
1. The possible causes of labor rate variance are the following, except: a .Use of an employee having a wage classification other than that assumed
1. The possible causes of labor rate variance are the following, except:
a .Use of an employee having a wage classification other than that assumed when the standard for a job was set.
b. Inexperienced workers hired
c. Change in labor rate
d. Good or poor training of workers
2. Examination of past payroll and production records can reveal the worker-hours used on various jobs and can help determine standard performance. Time reports from workers for a limited period will be a good basis for the standard.
a. Setting Labor Standard Time
b. Setting Labor Standard Rate
c. Setting Labor Costs
d. Setting Manufacturing Overhead Costs
3. Delta Company uses a standard costing system in the production of its only product. The 84,000 units of raw materials inventory were purchased for 126,000 and 4 units of raw materials are required to produce one unit of final product. In October, the company produced 14,400 units of product. In standard cost allowed for materials was P72,000, and there was an unfavorable usage variance of P3,000. The units of materials used to produce the October output totaled
a. P55,200
b. P18,000
c. P60,000
d. P57,600
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