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Unformatted text preview: unfavorable variance, as above Actual cost of goods sold $220,050 7070 $227,120 This $16,290 net unfavorable variance also accounts for the difference between the bud Budgeted net operating income Deduct the net unfavorable variance added to cost of goods sold for the month Net operating income 3 $37,950 7070 $30,880 The two most significant variances are the materials quantity variance and the labor rat Materials quantity Unskilled workers, poorly variance adjusted machines, carelessness, poorly trained workers, bad materials. Labor rate variance Change in pay scale, overtime pay could be included. Actual Quantity of Input, at Standard Price (AQ SP) 62,000 pounds $1.80 per pound $111,600 Standard Quantity Allowed for Standard Pric (SQ SP) 51,000 pounds $1.80 per pou $91,800 ce 51,000 pounds...
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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.
- Winter '08