CH 24 Standard Costs and Balanced Scorecard

Question 1

Total Variance

Answer 1

Materials Variance + Labor Variance + MOH Variance = Total Variance

Question 2

Total Materials Variance

Answer 2

( AQ x AP ) - ( SQ x SP ) = TMV

Question 3

Materials Price Variance

Answer 3

( AQ x AP ) - ( AQ x SP ) = MPV

Question 4

Material Quantity Variance

Answer 4

(AQ x SP) - (SQ x SP) = MQV

Question 5

Total Labor Variance

Answer 5

( AH x AR ) - ( SH x SR ) = TLV

Question 6

Labor Price Variance

Answer 6

( AH x AR ) - ( AH x SR ) = LPV

Question 7

Labor Quantity Variance

Answer 7

( AH x SR ) - ( SH x SR ) = LQV

Question 8

Total MOH Variance

Answer 8

Actually MOH - MOH Applied ( expected MOH ) = Total MOH Variance

Question 9

Financial Scorecard

Answer 9

Return on assets
Net income
Credit rating
Share price
Profit per employee

Question 10

Customer scorecard

Answer 10

Customer recommendation percentage
Customer retention
Response time per customer request
Brand recognition
Customer service expense per customer

Question 11

Internal process scorecard

Answer 11

Percentage of defect free products
Stockouts
Labor utilization rates
Waste reduction
Planning accuracy

Question 12

Learning and growth scorecard

Answer 12

Employee retention percentage
Number of cross trained employees
Ethics violation
Training hours
Reportable accidents

Question 13

What is the difference between a standard and budget cost?

Answer 13

A standard is a UNIT amount while a budget is a TOTAL amount.