An expression of the hourly labor pay cost per function or jobclassification that is expected to exist during the next accountingperiod is the definition of a:A. direct labor time standard. B. direct materials quantity standard. C. direct labor rate standard. D. variable overhead rate. Multiplying the standard price of direct materials by the standardquantity for direct materials yields:A. the direct materials price variance. B. the direct materials quantity variance. C. the standard direct materials cost. D. nothing; the two components should be added together. Which of the following provides an explanation of why the variableoverhead rate is separated from the fixed overhead rate in standardcosting?A. There is no justifiable reason; their separation is merely tosimplify entries. B. Both calculations divide by the same direct labor hours, but thenumerator is different for each calculation. C. The variable overhead rate is calculated using actual directlabor hours, whereas the fixed overhead rate is calculated usingnormal capacity direct labor hours. D. Different application bases are generally appropriate. The primary difference between a fixed (static) budget and aflexible budget is that a fixed budget:A. cannot be changed after the period begins, whereas a flexiblebudget can be changed after the period begins. B. is concerned only with future acquisitions of fixed assets,whereas a flexible budget is concerned with expenses that vary withsales. C. is a plan for a single level of production, whereas a flexiblebudget is several plans (one for each of several productionlevels). D. includes only fixed costs, whereas a flexible budget includesonly variable costs. The formula used to compute budgeted total cost at any level ofactivity is presented in the:A. flexible budget. B. performance report. C. static budget. D. cash flow forecast. The difference between the standard quantity allowed and the actualquantity used multiplied by standard price is the equation forcomputing the:A. direct labor efficiency variance. B. direct materials price variance. C. direct labor rate variance. D. direct materials quantity variance.

An expression of the hourly labor pay cost per function or jobclassification that is expected to exist during the next accountingperiod is the definition of a:A. direct labor time standard. B. direct materials quantity standard. C. direct labor rate standard. D. variable overhead rate. Multiplying the standard price of direct materials by the standardquantity for direct materials yields:A. the direct materials price variance. B. the direct materials quantity variance. C. the standard direct materials cost. D. nothing; the two components should be added together. Which of the following provides an explanation of why the variableoverhead rate is separated from the fixed overhead rate in standardcosting?A. There is no justifiable reason; their separation is merely tosimplify entries. B. Both calculations divide by the same direct labor hours, but thenumerator is different for each calculation. C. The variable overhead rate is calculated using actual directlabor hours, whereas the fixed overhead rate is calculated usingnormal capacity direct labor hours. D. Different application bases are generally appropriate. The primary difference between a fixed (static) budget and aflexible budget is that a fixed budget:A. cannot be changed after the period begins, whereas a flexiblebudget can be changed after the period begins. B. is concerned only with future acquisitions of fixed assets,whereas a flexible budget is concerned with expenses that vary withsales. C. is a plan for a single level of production, whereas a flexiblebudget is several plans (one for each of several productionlevels). D. includes only fixed costs, whereas a flexible budget includesonly variable costs. The formula used to compute budgeted total cost at any level ofactivity is presented in the:A. flexible budget. B. performance report. C. static budget. D. cash flow forecast. The difference between the standard quantity allowed and the actualquantity used multiplied by standard price is the equation forcomputing the:A. direct labor efficiency variance. B. direct materials price variance. C. direct labor rate variance. D. direct materials quantity variance.

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