The standard predetermined overhead rate must be based on direct labor hours as the standard activity index.
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Q6: A variance is the difference between actual
Q7: Setting standard costs is relatively simple because
Q8: If actual costs are less than standard
Q9: Standard cost is the industry average cost
Q10: An advantage of standard costs is that
Q12: A standard is a unit amount whereas
Q13: Inventories cannot be valued at standard cost
Q14: An unfavorable labor quantity variance indicates that
Q15: Normal standards incorporate normal contingencies of production
Q16: Actual costs that vary from standard costs
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