61. A business is expanding rapidly and buying its material in a variety of countries in a variety of currencies. It has an exclusive supply delivery contract whereby the same logistics expert makes all deliveries into its warehouses on a cost-plus basis. It pays all delivery charges on a per unit basis.
Which THREE of the following are valid explanations of an adverse material price variance measured to include delivery costs as part of the cost per kg delivered?
62. An organisation has recorded a favourable labour rate planning variance for the year of $40,000. On investigation it has discovered that, whilst actual labour rates were $60 per hour, a revised standard rate for labour should have been $70 per hour for the actual hours worked of 20,000. What was the original planned labour rate per hour for the year (to the nearest $)?
64. Which of the following statements are true regarding material price planning variances?
(1) The publication of material price planning variances should always lead to automatic updates of standard costs.
(2) The causes of material price planning variances do not need to be investigated by managers at any level in the organisation.
65. Which of the following statement(s) regarding the use of standard costs in rapidly changing environments is/are true?
(1) Variance analysis results will take into account important criteria such as customer satisfaction or quality of production.
(2) Achieving standards is suitable in most modern manufacturing environments.