Chapter8Solutions

Chapter8Solutions - Brief Exercise 8-2 (30 minutes) 1....

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Brief Exercise 8-2  (30 minutes) 1. Number of chopping blocks. ................................... 4,000 Number of board feet per chopping block. ............. ×            2.5     Standard board feet allowed. .................................. 10,000 Standard cost per board foot. ................................. ×      $1.80     Total standard cost. ................................................ $18,000 Actual cost incurred. ............................................... $18,700 Standard cost above. .............................................   18,000     Total variance—unfavorable. .................................. $            700     2. 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) $18,700 11,000 board feet ×  $1.80 per board foot 10,000 board feet × $1.80  per board foot = $19,800 = $18,000 Price Variance,  $1,100 F Quantity Variance,  $1,800 U Total Variance, $700 U Alternatively: Materials price variance = AQ (AP – SP)  11,000 board feet ($1.70 per board foot* – $1.80 per board foot)  $1,100 F *$18,700 ÷ 11,000 board feet = $1.70 per board foot. Materials quantity variance = SP (AQ – SQ) $1.80 per board foot (11,000 board feet – 10,000 board feet) =  $1,800 U
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Brief Exercise 8-3  (30 minutes) 1. Number of meals prepared. .................... 6,000 Standard direct labor-hours per meal. ....  × 0.20 Total direct labor-hours allowed. .............  1,200 Standard direct labor cost per hour. ........ × $9.50 Total standard direct labor cost. .............. $11,400 Actual cost incurred. ............................... $11,500  Total standard direct labor cost (above).   11,400       Total direct labor variance. ...................... $            100       Unfavorable 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) 1,150 hours × $10.00 per hour 1,150 hours × $9.50 per hour
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This note was uploaded on 03/24/2009 for the course ATG 212 taught by Professor Dascher during the Spring '09 term at Stetson.

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Chapter8Solutions - Brief Exercise 8-2 (30 minutes) 1....

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