1. In your own words explain the term standard and then more specifically for a price standard and quantity standard. What types of standards have you experienced
2. Provide an explanation and examples of standard quantity per unit and standard price per unit.
3. Think about direct labor. Explain and give examples of standard hours per unit.
4. What is a standard cost card? What information is included on it
5. In exhibit 10-2 explain the cause of the spending variances for Colonial Pewter.
6. Explain the concepts of price and quantity variance.
7. In your own words interpret exhibit 10-3.
8. In your own words explain the meaning of standard quantity allowed. Do it as if explaining to a person not studying accounting.
9. A spending variance for materials is composed of what two other variances? Explain why this makes sense.
10. What does the materials price variance measure
11. What does the materials quantity variance measure
12. Explain the labor efficiency variance. Describe possible causes of it.
13. Explain variable manufacturing overhead variances.
14. Discuss the subtlety in the materials price variance the text presents.
15. Describe possible advantages and problems in the use of standard costs.