{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Chapter 21

# Chapter 21 - Quantity Variance • SP(AQ-SQ •...

This preview shows pages 1–4. Sign up to view the full content.

Chapter 21 - Variance 18:42 Actual                        Cost=(Price)(Quantity) Budgeted (Standard)   Cost=(Price)(Quantity)                                     \$30,000     the absolute value Sales of 2000 units Purchased 5000 lbs. of material @ \$1.75/lb. Standards for materials  2 lbs/unit \$1.50/lb AQ: 5000 lbs SQ: 4000 lbs AP: \$1.75/lb SP: \$1.50/lb Price variance AQ(AP-SP) = 5000|\$1.75-\$1.50|= 5000(.25)=\$1,250 U(nfavorable)

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Quantity Variance • SP(AQ-SQ) • 1.50(5000-4000)=\$1500 U Sales 2000 units In March: • worked 3,900 hours • paid \$9750 Standard • Rate of \$5/hour • Work 2 hours/unit AH: 3,900 SH: 4,000 AR: 2.50 SR: 5.00 Total Variance • 9750-20,000 = 10,250 F Quantity in Labor is Hours • SR(AH-SH) efficiency variance • 5(3900-4000)= 500 Favorable Price in Labor is Rate • AH(AR-SR) Rate Variance • 3900(2.50-5)=9,750 Favorable 21 18:42 18:42...
View Full Document

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern