Tufts University Quantity Standard and Price Standard Questions

UESTION DESCRIPTION

1.What is a quantity standard? What is a price standard?

2.Why are separate price and quantity variances computed?

3.Who is generally responsible for the materials price variance? The materials quantity variance? The labor efficiency variance?

4.If the materials price variance is favorable but the materials quantity variance is unfavorable, what might this indicate?

5.What effect, if any, would you expect poor-quality materials to have on direct labor variances?

6.Why can undue emphasis on labor efficiency variances lead to excess work in process inventories?