The budgeted amount for direct material to be used is based on standard cost per unit, material required per unit of output, and the units produced. When determining the budgeted amount of material to be used then the predetermined costs are used. To calculate: The budgeted amount for direct material used, direct labor cost, and applied overheads .

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Answer 1

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Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 26, Problem 1E

a.

To determine

Introduction: The budgeted amount for direct material to be used is based on standard cost per unit, material required per unit of output, and the units produced. When determining the budgeted amount of material to be used then the predetermined costs are used.

To calculate: The budgeted amount for direct material used, direct labor cost, and applied overheads.

b

To determine

Introduction: The standard cost per unit is the pre-established cost per unit. The standard costs indicate the planned cost of producing a unit of output. The standard cost of producing a unit includes the cost of material, cost of labor, and overheads.

To calculate: The Standard cost per unit.

c

To determine

Introduction: The companies incur a lot of costs in their day to operations and therefore need to control the cost. The costs can be controlled only if there are predetermined costs or budgets. The standard cost and budget can help in comparing actual costs with budgeted ones.

The advantages of standard cost to an entity.

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Answer 2

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 26, Problem 1E

a.

To determine

Introduction: The budgeted amount for direct material to be used is based on standard cost per unit, material required per unit of output, and the units produced. When determining the budgeted amount of material to be used then the predetermined costs are used.

To calculate: The budgeted amount for direct material used, direct labor cost, and applied overheads.

b

To determine

Introduction: The standard cost per unit is the pre-established cost per unit. The standard costs indicate the planned cost of producing a unit of output. The standard cost of producing a unit includes the cost of material, cost of labor, and overheads.

To calculate: The Standard cost per unit.

c

To determine

Introduction: The companies incur a lot of costs in their day to operations and therefore need to control the cost. The costs can be controlled only if there are predetermined costs or budgets. The standard cost and budget can help in comparing actual costs with budgeted ones.

The advantages of standard cost to an entity.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 3

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 26, Problem 1E

a.

To determine

Introduction: The budgeted amount for direct material to be used is based on standard cost per unit, material required per unit of output, and the units produced. When determining the budgeted amount of material to be used then the predetermined costs are used.

To calculate: The budgeted amount for direct material used, direct labor cost, and applied overheads.

b

To determine

Introduction: The standard cost per unit is the pre-established cost per unit. The standard costs indicate the planned cost of producing a unit of output. The standard cost of producing a unit includes the cost of material, cost of labor, and overheads.

To calculate: The Standard cost per unit.

c

To determine

Introduction: The companies incur a lot of costs in their day to operations and therefore need to control the cost. The costs can be controlled only if there are predetermined costs or budgets. The standard cost and budget can help in comparing actual costs with budgeted ones.

The advantages of standard cost to an entity.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 26, Problem 1E

a.

To determine

Introduction: The budgeted amount for direct material to be used is based on standard cost per unit, material required per unit of output, and the units produced. When determining the budgeted amount of material to be used then the predetermined costs are used.

To calculate: The budgeted amount for direct material used, direct labor cost, and applied overheads.

b

To determine

Introduction: The standard cost per unit is the pre-established cost per unit. The standard costs indicate the planned cost of producing a unit of output. The standard cost of producing a unit includes the cost of material, cost of labor, and overheads.

To calculate: The Standard cost per unit.

c

To determine

Introduction: The companies incur a lot of costs in their day to operations and therefore need to control the cost. The costs can be controlled only if there are predetermined costs or budgets. The standard cost and budget can help in comparing actual costs with budgeted ones.

The advantages of standard cost to an entity.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 5

Chapter 26, Problem 1E

a.

To determine

Introduction: The budgeted amount for direct material to be used is based on standard cost per unit, material required per unit of output, and the units produced. When determining the budgeted amount of material to be used then the predetermined costs are used.

To calculate: The budgeted amount for direct material used, direct labor cost, and applied overheads.

b

To determine

Introduction: The standard cost per unit is the pre-established cost per unit. The standard costs indicate the planned cost of producing a unit of output. The standard cost of producing a unit includes the cost of material, cost of labor, and overheads.

To calculate: The Standard cost per unit.

c

To determine

Introduction: The companies incur a lot of costs in their day to operations and therefore need to control the cost. The costs can be controlled only if there are predetermined costs or budgets. The standard cost and budget can help in comparing actual costs with budgeted ones.

The advantages of standard cost to an entity.

Answer 6

Chapter 26, Problem 1E

a.

To determine

Introduction: The budgeted amount for direct material to be used is based on standard cost per unit, material required per unit of output, and the units produced. When determining the budgeted amount of material to be used then the predetermined costs are used.

To calculate: The budgeted amount for direct material used, direct labor cost, and applied overheads.

Answer 7

Chapter 26, Problem 1E

a.

To determine

Introduction: The budgeted amount for direct material to be used is based on standard cost per unit, material required per unit of output, and the units produced. When determining the budgeted amount of material to be used then the predetermined costs are used.

To calculate: The budgeted amount for direct material used, direct labor cost, and applied overheads.

Answer 8

b

To determine

Introduction: The standard cost per unit is the pre-established cost per unit. The standard costs indicate the planned cost of producing a unit of output. The standard cost of producing a unit includes the cost of material, cost of labor, and overheads.

To calculate: The Standard cost per unit.

Answer 9

b

To determine

Introduction: The standard cost per unit is the pre-established cost per unit. The standard costs indicate the planned cost of producing a unit of output. The standard cost of producing a unit includes the cost of material, cost of labor, and overheads.

To calculate: The Standard cost per unit.

Answer 10

c

To determine

Introduction: The companies incur a lot of costs in their day to operations and therefore need to control the cost. The costs can be controlled only if there are predetermined costs or budgets. The standard cost and budget can help in comparing actual costs with budgeted ones.

The advantages of standard cost to an entity.

Answer 11

c

To determine

Introduction: The companies incur a lot of costs in their day to operations and therefore need to control the cost. The costs can be controlled only if there are predetermined costs or budgets. The standard cost and budget can help in comparing actual costs with budgeted ones.

The advantages of standard cost to an entity.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 26 - Prob. 1Q Ch. 26 - 2. (a) Explain the similarities and differences...Ch. 26 - Prob. 3Q Ch. 26 - Prob. 4Q Ch. 26 - Prob. 5Q Ch. 26 - Prob. 6Q Ch. 26 - Prob. 7Q Ch. 26 - Prob. 8Q Ch. 26 - Prob. 9Q Ch. 26 - Prob. 10Q

Solution Summary: The author explains the budgeted amount for direct material used, direct labor cost, and applied overheads.

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Introduction: The standard cost per unit is the pre-established cost per unit. The standard costs indicate the planned cost of producing a unit of output. The standard cost of producing a unit includes the cost of material, cost of labor, and overheads.

To calculate: The Standard cost per unit.

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Chapter 26 Solutions

Solution Summary: The author explains the budgeted amount for direct material used, direct labor cost, and applied overheads.

Concept explainers

Videos

Introduction: The standard cost per unit is the pre-established cost per unit. The standard costs indicate the planned cost of producing a unit of output. The standard cost of producing a unit includes the cost of material, cost of labor, and overheads. To calculate: The Standard cost per unit.

Want to see the full answer?

Chapter 26 Solutions

Introduction: The standard cost per unit is the pre-established cost per unit. The standard costs indicate the planned cost of producing a unit of output. The standard cost of producing a unit includes the cost of material, cost of labor, and overheads.

To calculate: The Standard cost per unit.