Standard costing：練習題

Which of the following is a potential disadvantage of using a standard costing system?

Which variance is calculated by comparing the actual quantity of units sold with the budgeted quantity of units sold, valued at the standard contribution (or profit) per unit?

What does a favourable sales price variance indicate?

Which variance is calculated by comparing the actual quantity of materials used at the standard price with the standard quantity allowed for actual production at the standard price?

A manufacturing company operates a standard costing system. The following information is provided for the month of May:

- Standard labour time per unit: \( 3 \) hours
- Actual production: \( 2,000 \) units
- Actual labour hours worked: \( 5,800 \) hours
- Budgeted fixed overhead absorption rate: \( \$4 \) per direct labour hour

What is the fixed overhead efficiency variance?

Define what is meant by a standard costing system within a manufacturing organization.

Explain the difference between a fixed overhead capacity variance and a fixed overhead efficiency variance.

Briefly explain how an adverse direct material price variance might be interrelated with a favourable direct material usage variance.

State two disadvantages or limitations of implementing a standard costing system in a business that operates in a rapidly changing environment with frequent price fluctuations.

Identify three possible causes for an adverse direct labour efficiency variance in a factory environment.