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Unformatted text preview: Exercise 86 (30 minutes) 1 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) 20,000 ounces $2.40 per ounce 20,000 ounces $2.50 per ounce 18,000 ounces* $2.50 per ounce = $48,000 = $50,000 = $45,000 Price Variance, $2,000 F Quantity Variance, $5,000 U Total Variance, $3,000 U *2,500 units 7.2 ounces per unit = 18,000 ounces Alternatively: Materials price variance = AQ (AP SP) 20,000 ounces ($2.40 per ounce $2.50 per ounce) = $2,000 F Materials quantity variance = SP (AQ SQ) $2.50 per ounce (20,000 ounces 18,000 ounces) = $5,000 U Exercise 86 (continued) 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) $10,800 900 hours $10 per hour 1,000 hours* $10 per hour = $9,000 = $10,000 Rate Variance, $1,800 U Efficiency Variance, $1,000 F Total Variance, $800 U *2,500 units 0.4 hour per unit = 1,000 hours Alternatively: Labor rate variance = AH (AR SR) 900 hours ($12 per hour* $10 per hour) = $1,800 U *10,800 900 hours = $12 per hour Labor efficiency variance = SR (AH SH) $10 per hour (900 hours 1,000 hours) = 1,000 F Exercise 811 (60 minutes) 1. a....
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This note was uploaded on 06/01/2008 for the course ACCT 606 taught by Professor Huh during the Spring '08 term at CSU San Bernardino.
 Spring '08
 Huh

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