Standard Costs : In the accounting records, the term standard cost refers to the practice of replacement of an expected cost for an actual cost. Then the difference between the expected costs and actual costs showing the variance are also recorded periodically. A standard costs is also known as target cost or predetermined cost. Generally, the manufacturing companies use standard costs for each of the three product costs which are given as follows: 1. Direct materials cost 2. Direct labor cost, and 3. Factory overhead cost To identify: Whether the use of standards would be appropriate in a nonmanufacturing setting such as a fast-food restaurant.

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Answer 1

Question

Chapter 22, Problem 7DQ

To determine

Standard Costs:

In the accounting records, the term standard cost refers to the practice of replacement of an expected cost for an actual cost. Then the difference between the expected costs and actual costs showing the variance are also recorded periodically. A standard costs is also known as target cost or predetermined cost. Generally, the manufacturing companies use standard costs for each of the three product costs which are given as follows:

1. Direct materials cost

2. Direct labor cost, and

3. Factory overhead cost

To identify: Whether the use of standards would be appropriate in a nonmanufacturing setting such as a fast-food restaurant.

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Answer 2

Question

Chapter 22, Problem 7DQ

To determine

Standard Costs:

In the accounting records, the term standard cost refers to the practice of replacement of an expected cost for an actual cost. Then the difference between the expected costs and actual costs showing the variance are also recorded periodically. A standard costs is also known as target cost or predetermined cost. Generally, the manufacturing companies use standard costs for each of the three product costs which are given as follows:

1. Direct materials cost

2. Direct labor cost, and

3. Factory overhead cost

To identify: Whether the use of standards would be appropriate in a nonmanufacturing setting such as a fast-food restaurant.

Expert Solution & Answer

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Answer 3

Question

Chapter 22, Problem 7DQ

To determine

Standard Costs:

In the accounting records, the term standard cost refers to the practice of replacement of an expected cost for an actual cost. Then the difference between the expected costs and actual costs showing the variance are also recorded periodically. A standard costs is also known as target cost or predetermined cost. Generally, the manufacturing companies use standard costs for each of the three product costs which are given as follows:

1. Direct materials cost

2. Direct labor cost, and

3. Factory overhead cost

To identify: Whether the use of standards would be appropriate in a nonmanufacturing setting such as a fast-food restaurant.

Expert Solution & Answer

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Answer 4

Question

Chapter 22, Problem 7DQ

To determine

Standard Costs:

In the accounting records, the term standard cost refers to the practice of replacement of an expected cost for an actual cost. Then the difference between the expected costs and actual costs showing the variance are also recorded periodically. A standard costs is also known as target cost or predetermined cost. Generally, the manufacturing companies use standard costs for each of the three product costs which are given as follows:

1. Direct materials cost

2. Direct labor cost, and

3. Factory overhead cost

To identify: Whether the use of standards would be appropriate in a nonmanufacturing setting such as a fast-food restaurant.

Expert Solution & Answer

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Answer 5

Chapter 22, Problem 7DQ

To determine

Standard Costs:

In the accounting records, the term standard cost refers to the practice of replacement of an expected cost for an actual cost. Then the difference between the expected costs and actual costs showing the variance are also recorded periodically. A standard costs is also known as target cost or predetermined cost. Generally, the manufacturing companies use standard costs for each of the three product costs which are given as follows:

1. Direct materials cost

2. Direct labor cost, and

3. Factory overhead cost

To identify: Whether the use of standards would be appropriate in a nonmanufacturing setting such as a fast-food restaurant.

Answer 6

Chapter 22, Problem 7DQ

To determine

Standard Costs:

In the accounting records, the term standard cost refers to the practice of replacement of an expected cost for an actual cost. Then the difference between the expected costs and actual costs showing the variance are also recorded periodically. A standard costs is also known as target cost or predetermined cost. Generally, the manufacturing companies use standard costs for each of the three product costs which are given as follows:

1. Direct materials cost

2. Direct labor cost, and

3. Factory overhead cost

To identify: Whether the use of standards would be appropriate in a nonmanufacturing setting such as a fast-food restaurant.

Answer 7

Chapter 22, Problem 7DQ

To determine

Standard Costs:

In the accounting records, the term standard cost refers to the practice of replacement of an expected cost for an actual cost. Then the difference between the expected costs and actual costs showing the variance are also recorded periodically. A standard costs is also known as target cost or predetermined cost. Generally, the manufacturing companies use standard costs for each of the three product costs which are given as follows:

1. Direct materials cost

2. Direct labor cost, and

3. Factory overhead cost

To identify: Whether the use of standards would be appropriate in a nonmanufacturing setting such as a fast-food restaurant.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 22 - What are the basic objectives in the use of...Ch. 22 - What is meant by reporting by the principle of...Ch. 22 - Prob. 3DQ Ch. 22 - The materials cost variance report for Nickols...Ch. 22 - Prob. 5DQ Ch. 22 - Prob. 6DQ Ch. 22 - Prob. 7DQ Ch. 22 - A. Describe the two variances between the actual...Ch. 22 - If variances are recorded in the accounts at the...Ch. 22 - Briefly explain why firms might use non financial...

Solution Summary: The author explains the use of standards in a non-manufacturing setting, such as fast-food restaurants.

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Chapter 22 Solutions