Question 17.17. What are the two levels for standards settings? (Points : 2)

normal and fully efficient. normal and ideal. ideal and less efficient. fully efficient and fully effective.

Question 18.18. What should the direct materials quantity standard do? (Points : 2)

exclude unavoidable waste. exclude quality considerations. allow for normal spoilage. always be expressed as an ideal standard.

Question 19.19. What is the difference between a budget and a standard? (Points : 2)

a budget expresses what costs were, while a standard expresses what costs should be. a budget expresses management's plans, while a standard reflects what actually happened. a budget expresses a total amount, while a standard expresses a unit amount. standards are excluded from the cost accounting system, whereas budgets are generally incorporated into the cost accounting system.

Question 20.20. A company decided to replace an old machine with a new machine. Which of the following is considered a relevant cost? (Points : 2)

The book value of the old equipment Depreciation expense on the old equipment The loss on the disposal of the old equipment The current disposal price of the old equipment

Question 21.21. Kitzman Inc. produces a product requiring 3 direct labor hours at $15 per hour. During January, 2,000 products are produced using 6,300 direct labor hours. Kitzmans actual payroll during January was $98,280. What is the labor quantity variance? (Points : 2)

$4,500 F $4,500 U $4,680 F $4,680 U