Go to www. YouTube.com and search for How It's Made, a television show produced by the...

 

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Go to www. YouTube.com and search for How It's Made, a television show produced by the Discovery Channel that shows how thousands of products and services are created. Find any product that interests you. Assume the company that makes this product uses a standard cost system, answer the following questions: • How would the company go about setting standards for this product? What types of standards would be included? • How would managers of the company use the standard costs? • Assume the company reported the following variances in the most recent period. Can you think of a scenario that would explain each combination of variances? • Unfavorable direct materials price variance, favorable direct materials usage variance, and unfavorable direct materials spending variance. • Favorable direct labor rate variance, unfavorable direct labor efficiency variance, and unfavorable direct labor spending variance. • Unfavorable direct labor efficiency variance and unfavorable variable overhead efficiency variance. • Favorable fixed overhead spending variance and favorable fixed overhead volume variance. Go to www. YouTube.com and search for How It's Made, a television show produced by the Discovery Channel that shows how thousands of products and services are created. Find any product that interests you. Assume the company that makes this product uses a standard cost system, answer the following questions: • How would the company go about setting standards for this product? What types of standards would be included? • How would managers of the company use the standard costs? • Assume the company reported the following variances in the most recent period. Can you think of a scenario that would explain each combination of variances? • Unfavorable direct materials price variance, favorable direct materials usage variance, and unfavorable direct materials spending variance. • Favorable direct labor rate variance, unfavorable direct labor efficiency variance, and unfavorable direct labor spending variance. • Unfavorable direct labor efficiency variance and unfavorable variable overhead efficiency variance. • Favorable fixed overhead spending variance and favorable fixed overhead volume variance.

Answer rating: 100% (QA)

Solution The company covers the following steps to establish a standard costing s... View the full answer