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inclass_ch10

# inclass_ch10 - Material 1 pound at \$5 per lb \$ 5 Labor 5...

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Example #1: Standard cost of one unit Material 4 pounds at \$1 per lb. \$ 4 Labor 10 hours at \$6 per hour 60 Variable overhead 10 hours at \$3 per hour 30 Actual: Produced 1,000 units of product Purchased and used 4,100 lbs. @ .90 per lb. = \$ 3,690 Direct labor 11,000 hours at \$5 per hour = \$55,000 Variable factory overhead = \$44,000 Compute the variances: material price variance: material quantity variance: Could the amount of one variance affect another variance? labor rate variance: labor efficiency variance: total labor variance: variable overhead spending variance: variable overhead efficiency variance: total variable overhead variance: 1

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Example: #2 Variable Standard cost of one unit
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Unformatted text preview: Material 1 pound at \$5 per lb. \$ 5 Labor 5 hours at \$8 per hour 40 Variable overhead 5 hours at \$4 per hour 20 Actual: Produced 1,000 units of product Purchased 2,000 pounds @ \$5.10 per pound = \$10,200 Used 980 pounds on production Direct labor 4,800 hours at \$9 per hour = \$43,200 Variable factory overhead = \$24,000 Compute the variances: material price variance: material quantity variance: Could the amount of one variance affect another variance? labor rate variance: Labor efficiency variance: Total labor variance: Variable overhead spending variance: Variable overhead efficiency variance: Total variable overhead variance: 2...
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