Purchased materials are added in the second department of a three-department process; this increases the number of units produced in the second department and would always:

Related MCQs

• Purchased materials are added in the second department of a three-department process, this order does not increase the number of units produced in the second department and would:
• Fifty units are put in a process at a total cost of Rs. 90. Wastage is normally 10% without any scrap value. If output is 40 units the amount of abnormal loss would be-----------
• The organization budgeted 400,000 for 40,000 hours of direct labour to complete 16,000 units of finished product. The firm used 42,000 direct-labour hours and completed 17,000 units of finished product. What is the direct-labour rate variance?
• In August actual material used amounted to 5,650 kg, budgeted output was 1,000 units and standard material usage was 5 kg per unit. Actual output was 1,075 units. If the standard material cost of each product is 25 the material efficiency variance will be:
• Which of the following is the best explanation of the relevance of equivalent production units in process costing?
• Materials may not be put into process
• The physical flow of units into and out of departments is shown on the:
• The firm’s direct-labour rate variance was 4,800 unfavourable. Actual labour was 24,000 direct-labour hours, at a cost of 1,68,000, for 25,000 units of finished product that require 1 hour of direct labour each, at standard. What is the standard rate per direct-labour hour?
• An adverse material usage variance together with a favourable materials price variance could suggest that:
• ----------- variance is always adverse.