Managerial Accounting Homework Revew Chapter 11 Answer Key

# Managerial Accounting Homework Revew Chapter 11 Answer Key...

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Chapter 11 Standard Costs and Variance Analysis QUESTIONS E4. Material Price Variance = (AP - SP) AQ P = (\$6.75 - \$60) 200 = (\$10,650) favorable Actual price = \$1,350 ÷ 200 = \$6.75 Material Quantity Variance = (AQ U - SQ) SP = (123 - 120) \$60 = \$180 unfavorable Standard quantity = 40 × 3 = 120 E5. Labor Rate Variance = (AR - SR) AH = (\$23 - \$22) 800 = \$800 unfavorable Actual wage rate = \$18,400 ÷ 800 = \$23 Labor Efficiency Variance = (AH - SH) SR = (800 -702) \$22 = \$2,156 unfavorable Standard hours = 39 × 18 = 702 E6. a. Standard overhead rate per unit = Estimated overhead ÷ Estimated production = [\$599,760 + (\$600 × 504)] ÷ 504 = \$1,790 per unit b. Controllable Overhead Variance = Actual overhead - Flexible budget level of overhead for actual

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production = \$76,000 - [\$49,980 + (40 × \$600)] = \$76,000 - \$73,980 = \$2,020 unfavorable c. Overhead Volume Variance = Flexible budget level of overhead for actual production - Overhead applied to production = [\$49,980 + (40 × \$600)] - (\$1,790
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## This note was uploaded on 09/22/2009 for the course BUSINESS ACG 2071 taught by Professor Love during the Fall '09 term at Florida State College.

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Managerial Accounting Homework Revew Chapter 11 Answer Key...

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