Batch-Level Costs Include

question 1

Multiple Choice

Batch-level costs include:

• A) Raw materials
• B) The cost of advertising a product
• C) Amortization of the manufacturing plant
• D) Tooling for a custom job

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Definitions:

Standard Costs

The predetermined expenses for the production of a product or operation of a service, used as a baseline to measure performance.

Direct Labor Wage Variance

The difference between the expected cost of direct labor for production and the actual cost incurred.

Direct Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected, multiplied by the standard labor rate.