10-1. A standard is:

	a. unrelated to budgeting since standards are used for control purposes only.
	b. normally set at the ideal rather than the practical level of cost, efficiency, or quantity.
	c. normally not applied to the variable portion of overhead.
	d. the budgeted cost for one unit of product.

10-2. The materials price variance should be computed:

	a. when materials are purchased.
	b. when materials are used in production.
	c. based upon the amount of materials used in production when only a portion of materials purchased is actually used.
	d. based upon the difference between the actual quantity of inputs and the standard quantity allowed for output times the standard price.

10-3. Which of the following represents value-added time in the manufacturing cycle?

	a. Inspection Time.
	b. Queue Time.
	c. Move Time.
	d. Process Time.

10-4. The throughput time, or velocity of production, consists of:

	a. Process Time.
	b. Inspection Time and Move Time.
	c. Process Time, Inspection Time, and Move Time.
	d. Process Time, Inspection Time, Move Time, and Queue Time.

10-5. Questions 5 - 9 refer to the following:
Dark Company uses standard costing for the single product the company makes and sells. The following data are for the month of April:

1. Actual cost of direct material purchased and used: $62,400.
2. Material price variance: $4,800 unfavourable.
3. Total materials variance: $14,400 unfavourable.
4. Standard cost per pound of material: $6.
5. Standard cost per direct labour hour: $8.
6. Actual direct labour hours: 3,800 hours.
7. Labour efficiency variance: $1,600 favourable.
8. Standard number of direct labour hour per unit of product: 2.
9. Total labour variance: $680 unfavourable.

	a. 8,000.
	b. 12,000.
	c. 2,000.
	d. 3,800.

10-6. The standard quantity of material allowed to produce one unit of product was:

	a. 1 lb.
	b. 4 lbs.
	c. 6 lbs.
	d. 2 lbs.

10-7. The actual material cost per pound was:

	a. $6.50.
	b. $6.00.
	c. $5.00.
	d. $7.20.

10-8. The actual direct labour rate per hour was:

	a. $6.00.
	b. $6.50.
	c. $8.00.
	d. $8.60.

10-9. The labour rate variance was:

	a. $2,280 favourable.
	b. $2,280 unfavourable.
	c. $920 favourable.
	d. $920 unfavourable.

10-10. Webber, Inc. gathers the following information about it operations: Throughput time, 4 hours; Delivery cycle time, 8 hours; Process time, 1 hour; Queue time, 2 hours. Webber's manufacturing cycle efficiency (MCE) is:

	a. 50%.
	b. 75%.
	c. 25%.
	d. 12%.