Kinch_Problem 10-17 - Student Name: Alex Kinch Class: TWF...

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Student Name: Alex Kinch Class: TWF 2-3 Problem 10-17 COTTONWOOD HOSPITAL Materials Price and Quantity Variance Standard quantity of plates allowed: Smears 2,700 Blood tests 900 Total 3,600 Plates per test 3 Standart quantity allowed 10,800 Correct! Standard Actual Actual Standard Standard Actual qty. Actual qty. qty. quantity price quantity price @ actual price @ std. price @ std. price 16,000 $2.40 10,800 $2.50 $38,400 $40,000 $27,000 Price Variance $1,600 Favorable Quantity Variance $8,000 Unfavorable COTTONWOOD HOSPITAL Labor Rate and Efficiency Variances Standard hours allowed: Smears 810 Blood tests 540 Total standard hours allowed 1,350 Correct! Standard Actual Actual Standard Standard Actual hours Actual hours hours hours rate hours rate @ actual rate @ std. rate @ std. rate 1,800 $10.25 1,350 $12.00 $18,450 $21,600 $16,200 Rate Variance $3,150 Unfavorable Efficiency Variance $5,400 Favorable Total Variance $2,250 Favorable COTTONWOOD HOSPITAL Variable Overhead Spending and Efficiency Variances Standard Actual Actual Standard Standard Actual hours Actual hours hours hours rate hours rate @ actual rate @ std. rate @ std. rate 1,800 $6.50 1,350 $6.00 $11,700 $10,800 $8,100 Spending Variance $900 Favorable
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Efficiency Variance $2,700 Unfavorable Total Variance $3,600 Unfavorable
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Number of blood tests 900 Number of smears 2,700 Number of plates purchased 16,000 Cost of plates $38,400 Quantity discount allowed 4% Unused plates at month end 2,000 Labor hours 1,800 Cost of labor hours $18,450 Variable overhead costs $11,700 Nationwide averages: Number of plates per test 3 Cost per plate $2.50 Time for smear (hours) 0.30 Time for blood test (hours) 0.60 Average cost of lab time per hour $12.00
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Kinch_Problem 10-17 - Student Name: Alex Kinch Class: TWF...

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