A Job Has a Normal Time of 12 Minutes,a Performance

question 20

Multiple Choice

A job has a normal time of 12 minutes,a performance rating of 0.80,and an allowance proportion of 20 percent of the workday.The standard time for this job in minutes is:

• A)11.52
• B)12
• C)14.4
• D)15

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Definitions:

Direct Materials Purchases Variance

The difference between the actual cost of direct materials purchased and the expected cost, based on standard prices and quantities.

Standard Costs

Predetermined or estimated costs used for budgeting and measuring performance, typically under ideal operating conditions.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard quantity expected to be used, based on budgeted or planned amounts.

Direct Labor-Hours

The total hours worked by employees directly involved in the production process, used as a basis for allocating manufacturing overhead in cost accounting.