Reference: 11-03
the Albright Company Uses Standard Costing and Has

question 93

Multiple Choice

Reference: 11-03
The Albright Company uses standard costing and has established the following standards for its single product: $$\begin{array} { | l | l | } \hline \text { Direct materials } & 2 \text { litres at } \$ 3 \text { per litre } \\\hline \text { Direct labour } & 0.5 \text { hours at } \$ 8 \text { per hour } \\\hline \text { Variable manuf. overhead } & 0.5 \text { hours at } \$ 2 \text { per hour } \\\hline \begin{array} { l } \text { During November, the company made } 4,000 \text { units } \\\text { and incurred the following costs: }\end{array} & \\\hline \text { Direct materials purchased } & 8,100 \text { litres at } \$ 3.10 \\\hline & \text { per litre } \\\hline \text { Direct materials used } & 7,600 \text { litres } \\\hline \text { Direct labour used } & 2,200 \text { hours at } \$ 8.25 \text { per hour } \\\hline \text { Actual variable manuf. overhead } & \$ 4,175 \\\hline\end{array}$$ The company applies variable manufacturing overhead to products on the basis of direct labour hours.
-To measure controllable production inefficiencies, which of the following is the bes? basis for a company to use in establishing the standard hours allowed for the output of one unit of product?

• A)The hours per unit that would be required for the present workforce to satisfy expected demand over the long run.
• B)Average historical performance for the last several years.
• C)Engineering estimates based on attainable performance.
• D)Engineering estimates based on ideal performance.

Recognize the muscles involved in pelvic floor support and their importance in pelvic health.

Understand the coordination of eye movements and the muscles involved.

Understand the basic concepts of fixed, variable, and total costs in economic decision-making.

Distinguish between sunk costs and relevant costs for decision-making.

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Definitions:

Average Rate of Return

A measure of the profitability of an investment, calculated by dividing the average annual profit by the initial investment cost.

Present Values

The current valuation of a future financial gain or series of payments, after applying a specific return rate.

Net Present Value Method

A valuation method that calculates an investment's worth by determining the present value of its expected future cash flows, subtracting the initial investment cost.

Capital Investment Analysis

The process of evaluating investments in physical assets to determine their potential for profit.