Chapter_10_MC_Questions

Chapter_10_MC_Questions - Capricorn Company reported a...

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A) the actual cost per unit of materials was less than the standard cost per unit. B) the actual usage of materials was less than the standard allowed. C) more materials were purchased than were used. D) more materials were used than were purchased. 2 Standards that do not allow for machine breakdowns or other work interruptions and that require peak efficiency at all times are known as: A) budgeted standards. B) ideal standards. C) normal standards. D) practical standards. 3 The "standard quantity allowed" is computed by multiplying the: A) actual input in units by the standard output allowed. B) actual output in units by the standard input allowed. C) actual output in units by the standard output allowed. D) standard output in units by the standard input allowed. 4 Taurus Company, a clothing manufacturer, uses a standard costing system. Each unit of a finished product contains 2 yards of cloth. However, there is unavoidable waste of 25%, calculated on input quantities, when the cloth is cut for assembly. The cost of the cloth is $6 per yard. The standard direct material cost for cloth per unit of finished product is: A) $9.60. B) $12.00. C) $14.00. D) $15.00. 5 Aquarius Company employs a standard cost system in which direct materials inventory is carried at standard cost. The company has established the following standard for the material costs of one unit of product: Capricorn Company reported a favorable materials price variance and an unfavorable materials quantity variance. Based on these variances, you can conclude that:
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This document was uploaded on 05/04/2009.

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Chapter_10_MC_Questions - Capricorn Company reported a...

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