BUS 215 Chapter Notes - Chapter 10: Pewter, Management Accounting
Document Summary
A standard is a benchmark for measuring performance. The standard quantity per unit defines the amount of dm that should be used for each. The standard price per unit defines the price that should be paid for each unit of dm. The standard hours per unit defines the amount of dlhs that should be used to and it should reflect the final, delivered cost of those materials produced one unit of fgs. Workers typically clock their time required for each task including employment taxes and fringe benefits. The standard rate per hour defines the company"s expected dl wage rate per hour. Standard hours/unit x standard rate per hour = $ / unit. The standard hours per unit for variable overhead measures the amount of the ab from. The standard rate per unit that a company expects to pay for variable overhead equals. Standard vmo/unit = standard hours/unit x variable portion of pohr.
