Ch09HWSolutionsEs3,4,9,11

Ch09HWSolutionsEs3,4,9,11 - CHAPTER 9 STANDARD COSTING A...

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CHAPTER 9 STANDARD COSTING: A FUNCTIONAL-BASED CONTROL APPROACH 9–3 1. MPV = (AP – SP)AQ MPV = ($0.045 – $0.040)570,000 = $2,850 U MUV = (AQ – SQ)SP MUV = (570,000 – 550,000)$0.040 = $800 U AP × AQ SP × AQ SP × SQ $0.045 × 570,000 $0.040 × 570,000 $0.040 × 550,000 $2,850 U $800 U Price Variance Usage Variance 2. LRV = (AR – SR)AH LRV = ($2.55 – $2.60)5,200 = $260 F LEV = (AH – SH)SR LEV = (5,200 – 5,000)$2.60 = $520 U AR × AH SR × AH SR × SH $2.55 × 5,200 $2.60 × 5,200 $2.60 × 5,000 $260 F $520 U Rate Variance Efficiency Variance 3. Materials. .................................................... 22,800 Direct Materials Price Variance. ............... 2,850 Accounts Payable. ............................... 25,650 Work in Process. ........................................ 22,000 Direct Materials Usage Variance. ............. 800 Materials. ............................................... 22,800 Work in Process. ........................................ 13,000 Direct Labor Efficiency Variance. ............ 520 Direct Labor Rate Variance. ................ 260 1
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Wages Payable. .................................... 13,260 9–4 1. Fixed overhead analysis: Applied FOH Actual FOH Budgeted FOH $0.375 × 520,000 $200,000 $187,500 $195,000 $12,500 U $7,500 F Spending Volume Note: Fixed OH rate = $187,500/500,000 = $0.375 per DLH The spending variance simply compares what we should have spent with the amount actually spent. One possible interpretation of the volume variance is that it is a measure of error in specifying the denominator volume. “We
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This note was uploaded on 11/14/2009 for the course ACC 2338 taught by Professor Tba during the Fall '09 term at Randolph College.

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Ch09HWSolutionsEs3,4,9,11 - CHAPTER 9 STANDARD COSTING A...

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