When calculating standard costs,what standards do direct materials and direct labor have?

Question

Quizplus · Accepted Answer

Direct materials and direct labor have both efficiency (quantity) standards and price standards when calculating standard costs. The efficiency standard specifies how much of each material or labor should be used for each unit produced, while the price standard sets the expected cost per unit of each material or labor used. Therefore, choice D is the correct answer.

When Calculating Standard Costs,what Standards Do Direct Materials and Direct