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Standard costs are used in companies for a variety of reasons. Which of the following is a benefit of using standard costs? a. They are

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Standard costs are used in companies for a variety of reasons. Which of the following is a benefit of using standard costs? a. They are used to estimate the cost of inventory: b. They are used to plan direct materials, direct labor and variable factory overhead. c. They are used to control costs. d. all of these choices The following data are given for Stringer Company: Budgeted production 26,000 units Actual production 27,500 units Materials: Standard price per ounce Standard ounces per completed unit Actual ounces purchased and used in production Actual price paid for materials $1,504,800 Labor: Standard hourly labor rate $22 per hour Standard hours allowed per completed unit Actual labor hours worked Actual total labor costs $4,020,000 Overhead: Actual and budgeted fixed overhead 1,029,600 Standard variable overhead rate $24.50 per standard labor hour Actual variable overhead costs $4,520,000 Overhead is applied on standard labor hours. The direct materials quantity variance is a. $22,800 favorable b. $22,800 unfavorable c. $52,000 favorable d. $52,000 unfavorable The following data relate to direct materials costs for February: Materials cost per yard: standard, \$1.97; actual, $2.05 Vards per unit; standard, 4.62 yards; actual, 5.25 yards Units of production: 9,200 The direct materials quantity variance is a. $11,418.12 favorable b. $11,881,80 unfavorable c. $11,881,80 favorable d. $11,418.12 unfavorable The standard costs and actual costs for factory overhead for the manufacture of 2,800 units of actual production are as follows: The fixed factory overhead volume variance is a. $0 b. 5896 favorable c. $896 unfavorable d. $1,120 unfavorable An unfavorable factory overhead controllable variance may be due to which of the following factors? a. failure to maintain an even flow of work b. machine breakdowns c. failure to obtain enough sales orders d. unexpected increases in the cost of utilities

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