Reference no: EM132933510
Problem 1: A standard cost is
Option 1: The planned unit cost of a product, component or service in a period.
Option 2: The budgeted cost ascribed to the level of activity achieved in a budget centre in a control period.
Option 3: The budgeted production cost ascribed to the level of activity in a budget period.
Option 4: The budgeted non-production cost for a product, component or service in a period.
X operates a standard marginal costing system. The following budgeted and standard cost information is available:
Budgeted production and sales 10,000 units
Direct material cost - 3 kg x Khs.10
Khs.30 per unit
Actual results for the period were as follows:
Production and sales 11,500 units
Direct material - 36,000 kg Khs.342,0000
Problem 2: The direct material price variance is
Option 1: Khs.18,000 adverse
Option 2: Khs.3,000 adverse
Option 3: Khs.3,000 favorable
Option 4: Khs.18,000 favorable
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