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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Managerial Accounting Homework Revew Chapter 11 Answer Key...

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