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Unformatted text preview: Problem 8-12A #1 A. Actual Quantity of Input, at Actual Price (AQ AP) 62,000 pounds $1.75 per pound $108,500 Price Variance $3,100 F 51,000 pounds 1.80 per pound (51 B. Actual Hours of Input, at the Actual Rate (AH AR) 11,800 hours ($7.00 per hour $6.00 per hour) =$11,800U $10.10 per hour $119,180 Rate Variance, $10,620 Total V $87 C. Actual Hours of Input, at the Actual Rate (AH AR) $19,240 Spending Variance, $3700 U Total V $33 2 Summary of variances Material price variance Material quantity variance Labor rate variance Labor efficiency variance $ 3,100 5,250 10,620 1,840 F U U F Variable overhead spending variance Variable overhead efficiency variance Net variance 3700 U 310 $19,570 F U The net unfavorable variance of $19570 Budgeted cost of goods sold at $14.67per pool Add the net...
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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