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Review for Test #2 - Variance Chapter 6 Raw Materials...

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Chapter 7 Materials Variance Price = (AUP – SUP) * AQP Quantity = (AQU – SQA) * SUP SQA = SQper unit * AUProduced Labor Variances Rate = (AR – SR) *AHW Efficiency = (AHW – SHW) * SR SHA = SDLHper unit * AUProduced MO Variances Variable Spending= AVMO – (SVR * AHW) Fixed Spending=AFMO – (SFR *B/EH) Variable Efficiency=(AHW – SHA) *SVR Volume=(B/EH – SHA) * SFR Unfavorable – positive #/add/DEBT Favorable – negative #/subtract/CREDIT Fixed = Machine Hours Variable = Direct Labor Hours Materials Raw Materials Inventory (SUP * APQ) Materials Price Variance Accounts Payable WIP Inventory (SUP * SQA) Materials Quantity Variance Raw Materials Inventory (SUP *AQU) Labor WIP Inventory (SR *SH) Labor Rate Variance Labor Efficiency Variance Wages Payable (Total actual cost) MO Applied WIP Inventory Fixed MO Variable MO Actual Fixed MO Variable MO Various Accounts Fixed MO to debit or credit depending on Fixed Spending Variance and Volume Variance. Variable MO to debit or credit depending on Variable Spending Variance and Variable Efficiency
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Unformatted text preview: Variance. Chapter 6 Raw Materials Inventory Accounts Payable WIP Inventory Raw Materials Inventory WIP Inventory Wages Payable WIP Inventory Manufacturing Overhead …applied Manufacturing Overhead Various Accounts……. .actual Finished Goods Inventory WIP Inventory COGS Finished Goods Inventory Cash Sales WA--Production Data : BI + Started = Units to Account 4 BI + S&C + EI = Units Accounted for (EUP) Cost Data: BI + Current Costs = Cost to Account 4 divide that by the EUP = EUP per unit Cost Assignment : TO + EWIP (DM, DL, MO) = Total Cost Accounted For FIFO -- Production Data : BI + Started = Units to Account 4 BI + S&C + EI = Units Accounted for (EUP) Cost Data: BI + Current Costs = Cost to Account 4 divide that by the EUP = EUP per unit Cost Assignment : BI + Current Costs on BWIP (DM, DL, MO) + S&C + EWIP (DM, DL, MO) = Total Costs FIFO: BI to calculate EUP use % to be completed BI in Cost Data Exclude...
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