When considering setting standards for costing, which of the following would NOT be appropriate?
A、The normal level of activity should always be used for absorbing overheads
B、Average prices for materials should be used, encompassing any discounts that are regularly available
C、The labour rate used will be the rate at which the labour is paid
D、Average material usage should be established based on generally-accepted working practices
A、The normal level of activity should always be used for absorbing overheads
B、Average prices for materials should be used, encompassing any discounts that are regularly available
C、The labour rate used will be the rate at which the labour is paid
D、Average material usage should be established based on generally-accepted working practices
【参考答案及解析】
The standard labour rate should be the expected rate/hour, but allowing for standard levels of idle time. For example, if the work force is paid $9 per hour but idle time of 10% is expected, the standard labour rate will be $10 per hour, not $9.
The standard labour rate should be the expected rate/hour, but allowing for standard levels of idle time. For example, if the work force is paid $9 per hour but idle time of 10% is expected, the standard labour rate will be $10 per hour, not $9.