Uitwerking_case_MA21_week3

# Uitwerking_case_MA21_week3 - Bachelor Economie –...

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Unformatted text preview: Bachelor Economie – Management Accounting jaar 2, periode 1 Case te behandelen tijdens de AWV van week 3 Deze week richt de aandacht zich op Case 11-55 en Case 12- CASE 11-55 (50 MINUTES) 1. The \$22,000 unfavorable variance between the budgeted and actual contribution margin for the chocolate nut supreme cookie product line during February is explained by the following variances: a. Direct-material price variance: Type of Material PQ*(AP +- SP) Variance Cookie mix............... 2,325,000(\$.02- \$.02) \$ Milk chocolate......... 1,330,000(\$.20- \$.15) 66,500 U Almonds.................. 240,000(\$.50- \$.50)... Total............................................................ \$66,500 U * PQ = AQ , because all materials were used during the month of purchase. + AP = actual total cost (given) ÷ actual quantity b. Direct-material quantity variance: Type of Material SP(AQ - SQ*) Variance Cookie mix............... \$.02(2,325,000- 2,250,000)................ \$ 1,500 U Milk chocolate......... \$.15(1,330,000- 1,125,000)................ 30,750 U Almonds.................. \$.50(240,000- 225,000)................... 7,500 U Total............................................................ \$39,750 U * SQ = standard ounces of input per pound of cookies × actual pounds of cookies produced. c. Direct-labor rate variance = AH(AR - SR) = 0. 1 Dividing the total actual labor cost by the actual labor time used, for each type of labor, shows that the actual rate and the standard rate are the same (i.e ., AR = SR ). Thus, this variance is zero. d. Direct-labor efficiency variance: Type of Labor SR*(AH - SH + ) Variance Mixing..................... \$.24(225,000- 225,000)................... \$ Baking..................... \$.30(400,000- 450,000)................... 15,000 F Total............................................................ \$15,000 F *Standard rate per minute = standard rate per hour ÷ 60 minutes + Standard minutes per unit (pound) × actual units (pounds) produced e. Variable-overhead spending variance = actual variable overhead - ( AH × SVR ) = \$375,000 - [(625,000*/60) ×...
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Uitwerking_case_MA21_week3 - Bachelor Economie –...

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