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202 Chapter 8 homework solutions

202 Chapter 8 homework solutions - Brief Exercise 8-4(30...

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Brief Exercise 8-4  (30 minutes) 1. Number of items shipped ................................... 120,000 Standard direct labor-hours per item .................   ×  0.02       Total direct labor-hours allowed .........................  2,400  Standard variable overhead cost per hour ......... ×  $3.25  Total standard variable overhead cost ............... $      7,800       Actual variable overhead cost incurred .............. $7,360  Total standard variable overhead cost (above).   7,800       Total variable overhead variance ....................... $        440       Favorable 2. Actual Hours of  Input, at the  Actual Rate Actual Hours of Input,  at the Standard Rate Standard Hours  Allowed for Actual  Output, at the  Standard Rate (AH × AR) (AH × SR) (SH × SR) 2,300 hours  ×  $3.20 per hour* 2,300 hours  ×  $3.25 per hour  2,400 hours  ×  $3.25 per hour  = $7,360 = $7,475 = $7,800 Variable Overhead  Spending Variance,  $115 F Variable Overhead  Efficiency Variance,  $325 F Total Variance,  $440 F *$7,360  ÷  2,300 hours =$3.20 per hour Alternatively, the variances can be computed using the formulas: Variable overhead spending variance: AH(AR – SR) = 2,300 hours ($3.20 per hour – $3.25 per hour) = $115 F Variable overhead efficiency variance: SR(AH – SH) = $3.25 per hour (2,300 hours – 2,400 hours) = $325 F
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Exercise 8-7  (30 minutes) 1. Actual Quantity  of Input, at  Actual Price Actual Quantity  of Input, at  Standard Price Standard Quantity  Allowed for Actual  Output, at Standard  Price (AQ  ×  AP) (AQ  ×  SP) (SQ  ×  SP) 20,000 pounds  × $2.35 per pound 20,000 pounds  × $2.50 per pound 18,400 pounds*  × $2.50 per pound = $47,000 = $50,000 = $46,000 Price Variance,  $3,000 F Quantity Variance,  $4,000 U Total Variance,  $1,000 U *4,000 units  ×  4.6 pounds per unit = 18,400 pounds Alternatively: Materials price variance = AQ (AP – SP) 20,000 pounds ($2.35 per pound – $2.50 per pound) = $3,000 F Materials quantity variance = SP (AQ – SQ) $2.50 per pound (20,000 pounds – 18,400 pounds) = $4,000 U
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Problem 8-12A  (90 minutes) 1. a. Actual Quantity of  Input, at Actual Price Actual Quantity  of Input, at  Standard Price Standard Quantity  Allowed for Actual  Output, at Standard  Price (AQ  ×  AP) (AQ  ×  SP) (SQ  ×  SP) 60,000 pounds  × $1.95 per pound 60,000 pounds  × $2.00 per pound 45,000 pounds*  × $2.00 per pound = $117,000 = $120,000 = $90,000
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