Questions:

11. What are the two types of variances (under standard costing) related to both materials and labor? 12. How are "standard quantities allowed" calculated? 13. A favorable materials price variance means that 14. An unfavorable labor efficiency variance means that 15. What are the debit and credit accounts used in journal entries to: a. b. c. d. e. f. g. h. Purchase materials Incur labor costs (ALL labor costs) Use materials (direct and indirect) Incur overhead costs (ALL types of overhead) Apply factory overhead Complete manufactured units Sell units Close out factory overhead account at the end of the period 16. What do we mean by "reorder point"? How is it calculated? 17. What does EOQ stand for? What does it establish? a. What two types of costs are considered when determining the EOQ? 18. What are the differences between the following types of wage plans? a. Hourly rate b. Salary c. Piece rate 19. In job-order costing, the following labor costs (for direct labor) would normally be considered (could be one or both) WIP Factory Overhead Shift premiums Hourly pay Employer paid medical insurance Piece rate pa Pavroll taxes on regular Hourlv pay (overtime rate ular rate 20. What types of costs are included in factory overhead? 21. What's the basic formula for determining an overhead rate? a. What are some typical cost drivers