Asked by Alexis Singleton on May 01, 2024
Verified
The standard quantity or standard hours allowed refers to the amount of the input that should have been used to produce the actual output of the period.
Standard Quantity
The budgeted or pre-determined amount of material or input expected to be used during a manufacturing process.
Standard Hours Allowed
The time that should have been taken to complete the period’s output. It is computed by multiplying the actual number of units produced by the standard hours per unit.
- Recognize the importance of standard costing in identifying and managing production variances.
Verified Answer
ZK
Zybrea KnightMay 08, 2024
Final Answer :
True
Explanation :
The standard quantity or standard hours allowed is the expected amount of input needed to produce a given output, not necessarily what was actually used.
Learning Objectives
- Recognize the importance of standard costing in identifying and managing production variances.