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

question 21

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.
-The standards that allow for no machine breakdowns or other work interruptions and that require peak efficiency at all times are referred to as:

• A)ideal standards.
• B)practical standards.
• C)normal standards.
• D)budgeted standards.

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Definitions:

Alkene

Hydrocarbons that contain at least one carbon-to-carbon double bond, characterized by the formula CnH2n.

Alkyne

A hydrocarbon with at least one carbon-carbon triple bond, characterized by the general formula CnH2n-2.

Hydrogen

The lightest and most abundant chemical element in the universe, symbol H.

Benzene

An aromatic hydrocarbon with a molecular formula C₆H₆, recognized for its simple ring structure and used as a precursor in the production of various chemicals.