Reference: 11-01
Bryan Company Employs a Standard Cost System in Which

question 69

Multiple Choice

Reference: 11-01
Bryan Company employs a standard cost system in which direct materials inventory is carried at standard cost. Bryan has established the following standards for the prime costs of one unit of product: $$\begin{array} { | l | l | l | l | } \hline & \text { Standard Quantity } & \text { Standard Price } & \text { Standard Cost } \\\hline \text { Direct materials } & 6.0 \text { grams } & \$ 3.50 / \text { gram } & \$ 21.00 \\\hline \text { Direct labour } & 1.3 \text { hours } & \$ 11.00 / \text { hour } & 14.30 \\\hline & & & \$ 35.30 \\\hline\end{array}$$ During March, Bryan purchased 165,000 grams of direct material at a total cost of $585,750. The total factory wages for March were $400,000, 90 percent of which were for direct labour. Bryan manufactured 25,000 units of product during March using 151,000 grams of direct material and 32,000 direct labour hours.
-Which of the following statements concerning practical standards is incorrect

• A)Practical standards can be used for product costing and cash budgeting.
• B)When practical standards are used, there is no reason to adjust standards if an old machine is replaced by a newer, faster machine.
• C)Practical standards can be attained by the average worker.
• D)Under practical standards, large variances are less likely than under ideal standards.

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The state of being free from outside control or support, capable of thinking or acting for oneself.

Evidence-Based Research

The process of systematically finding, appraising, and using research findings as the basis for clinical decisions, emphasizing the use of data and scientific results to support practice.

Mental Illness

A broad term for disorders that affect mood, thinking, and behavior, ranging from depression and anxiety to bipolar disorder and schizophrenia.

Self-esteem

This term refers to an individual's overall subjective sense of personal worth or value, affecting how they perceive and value themselves.