The standard quantity per unit for direct materials should not include an allowance for waste, spoilage and other inefficiencies

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The standard quantity per unit for direct materials should include an allowance for waste, spoilage, and other inefficiencies.

Direct materials standards are usually set by analyzing historical data on quantities used in production, as well as considering any changes or improvements in materials that could affect usage. Other factors, such as price fluctuations, supplier reliability, and quality control, are also taken into account.

Direct labour standards involve analyzing historical data on labour usage, as well as considering any changes in processes or technology that could affect productivity. The skill level and experience of workers, as well as any incentives or bonuses, may also be factors in setting labour standards.

The Standard Quantity Per Unit for Direct Materials Should Not