ACCT 225 - Assignment 7-2

# ACCT 225 - Assignment 7-2 - Problem 8-13A (75 minutes) 1 a....

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1 a. In the solution below, the materials price va Actual Quantity of Input, at Actual Quantity Actual Price of Input, at Standard Price (AQ × AP) (AQ × SP) 12,000 ounces × \$20.00 per ounce \$225,000 = \$240,000 Price Variance, \$15,000 F 9,500 ounces × \$20.00 per ounce = \$190,000 Quant *3,750 units × 2.5 ounces per unit = 9,375 ou Alternatively: Materials price variance = AQ (AP – SP) 12,000 ounces (\$18.75 per ounce* – \$20.00 p *\$225,000 ÷ 12,000 ounces = \$18.75 Materials quantity variance = SP (AQ – SQ)  \$20.00 per ounce (9,500 ounces – 9,375 oun Problem 8-13A  (75 minutes)

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b. Yes, the contract probably should be signed 2 a. Actual Hours of Actual Hours of Input, at the Input, at the Actual Rate Standard Rate (AH × AR) (AH × SR) 5,600 hours* × 5,600 hours × \$12.00 per hour \$12.50 per hour = \$67,200 = \$70,000 Rate Variance, Ef \$2,800 F Total Variance,
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## This note was uploaded on 05/02/2008 for the course ACCT 225 taught by Professor H during the Winter '08 term at Franklin.

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ACCT 225 - Assignment 7-2 - Problem 8-13A (75 minutes) 1 a....

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