B Chapter 19-1 - BChapter19 StandardCosts,,Quality...

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B Chapter 19 Standard Costs, Variable Costing Systems, Quality  Costs, and Joint Costs Standard Cost : A measure of how much  an item of cost should be, opposed to what  it actually was.  Standard Cost Sheet : A record of costs  (DM + Conversion Operations Example of Standard Cost Sheet-P. 587 Bill of Materials  is the formal name of the  Standard Cost Sheets ingredients Labor Routing is the formal name for the  cost sheets conversion operations P. 588 is example of Standard Cost   System Flowchart 
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If actual costs are higher than the SC, then  there is an unfavorable variance  If actual costs are lower than the SC, then  there is a favorable variance Materials Price Variance : Actual Q * Standard P- (Actual Q * Actual  Price = (Standard P-AP) * AQ= Change in P  (Difference between Standard and actual)  * AQ Usage of Materials :
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(SQ*SP)- (AQ*SP) =  (SQ-AQ) * SP = Change in Q* SP Direct Labor : Actual Labor Cost: Actual hours * actual  rates WIP inventory  is debited for SHrs. * S  Labor rates Overhead: Variance is caused by two items- Differences between SC and AC, and SQ  and AQ Control point:
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