OBJCH10_08 - explain their meaning and prepare related...

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COST AND MANAGEMENT ACCOUNTING 1 UNIT 4 - CHAPTER 10 - STANDARD COSTS AND OVERHEAD ANALYSIS - Part 1 LEARNING OUTCOMES : 1. Explain how direct materials standards and direct labour standards are set; 2. Define the following terms : management by exception, standard cost card, ideal standards, practical standards, standard quantity per unit, standard rate/price per hour or per unit, bill of materials , 3. Compute the direct materials price and quantity variances, explain their meaning, and prepare related journal entries. 4. Compute the direct labour rate and efficiency variances,
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Unformatted text preview: explain their meaning, and prepare related journal entries. 5. Compute the variable manufacturing overhead spending and efficiency variances and explain their meaning. 6. Understand the advantages and potential problems with using standard costs. (p. .455) 7. Understand when variances should be investigated (p. 452-453) 8. Prepare a standard cost card for direct materials and direct labout including allowances for wastage and rejected units. E10-1, E10-9; P10-29 Rev 03/11...
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