managerial accounting chapter 23 standard costs and balanced scorecard – Flashcards
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variances
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The difference between total actual costs and total standard costs.
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direct materials overall variance
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(std price X std quantity) - (act price X act quantity)
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direct materials price variance
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(std price X act quantity) - (act price X act quantity)
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direct materials quantity variance
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(std price X std quantity) - (std price X act quantity)
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direct labor variance
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(std rate X std hours) - (act rate X act hours)
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direct labor rate variance
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(std rate X act hours) - (act rate X act hours)
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direct labor quantity variance
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(std rate X std hours) - (std rate X act hrs)
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factory overhead variance
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foh applied - foh incurred
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standard costs
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Predetermined unit costs which companies use as measures of performance.
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ideal standards
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Standards based on the optimum level of performance under perfect operating conditions.
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normal standards
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Standards based on an efficient level of performance that are attainable under expected operating conditions.
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direct materials price standard
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The cost per unit of direct materials that should be incurred.
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direct materials quantity standard
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The quantity of direct materials that should be used per unit of finished goods.
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direct labor price standard
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The rate per hour that should be incurred for direct labor. - also known as direct labor rate standard
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direct labor quantity standard
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The time that should be required to make one unit of product. - also known as direct labor efficiency standard
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standard predetermined overhead rate
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An overhead rate determined by dividing budgeted overhead costs by an expected standard activity index.
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normal capacity
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The average activity output that a company should experience over the long run.
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balanced scorecard
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An approach that incorporates financial and nonfinancial measures in an integrated system that links performance measurement and a company's strategic goals.
