Chapter 11 Solutions

Chapter 11 Solutions - Exercise 111 (20 minutes) 1. Cost...

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Exercise 11-1  (20 minutes) 1. Cost per 15-gallon container. .................................. $115.00 Less 2% cash discount. ..........................................           2.30     Net cost. .................................................................. 112.70 Add shipping cost per container ($130 ÷ 100). ........           1.30     Total cost per 15-gallon container (a). ..................... $114.00 Number of quarts per container  (15 gallons × 4 quarts per gallon) (b). .................. 60 Standard cost per quart purchased (a) ÷ (b). .......... $1.90 2. Content per bill of materials. .............................. 7.6 quarts Add allowance for evaporation and spillage  (7.6 quarts ÷ 0.95 = 8.0 quarts;  8.0 quarts – 7.6 quarts = 0.4 quarts). ............. 0.4 quarts Total. .................................................................. 8.0 quarts Add allowance for rejected units  (8.0 quarts ÷ 40 bottles). ................................. 0.2 quarts Standard quantity per salable bottle of solvent. . 8.2 quarts 3. Item Standard  Quantity Standard Price Standard Cost  per Bottle Echol 8.2 quarts $1.90 per quart $15.58
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Exercise 11-2  (20 minutes) 1. Number of helmets. .............................................. 35,000 Standard kilograms of plastic per helmet. .............                 ×     0.6     Total standard kilograms allowed. ........................ 21,000 Standard cost per kilogram. ..................................             ×     RM8     Total standard cost. .............................................. RM168,000 Actual cost incurred (given). ................................. RM171,000 Total standard cost (above). .................................           168,000     Total material variance—unfavorable. .................. RM             3,000     2. Actual Quantity  of Input, at  Actual Price Actual Quantity of Input,  at Standard Price Standard Quantity  Allowed for Output, at  Standard Price (AQ × AP) (AQ × SP) (SQ × SP) 22,500 kilograms × 21,000 kilograms* × RM8 per kilogram RM8 per kilogram RM171,000 = RM180,000 = RM168,000   Price Variance,  RM9,000 F Quantity Variance,  RM12,000 U Total Variance,  RM3,000 U *35,000 helmets × 0.6 kilograms per helmet = 21,000 kilograms Alternatively, the variances can be computed using the formulas: Materials price variance = AQ (AP – SP) 22,500 kilograms (RM7.60 per kilogram* – RM8.00 per  kilogram)  = RM9,000 F * RM171,000 ÷ 22,500 kilograms = RM7.60 per kilogram Materials quantity variance = SP (AQ – SQ) RM8 per kilogram (22,500 kilograms – 21,000 kilograms)  = RM12,000 U
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Exercise 11-3  (20 minutes) 1. Number of meals prepared. .................... 4,000 Standard direct labor-hours per meal. ....  × 0.25
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This note was uploaded on 05/16/2010 for the course ACC MG taught by Professor Dr.leiter during the Spring '10 term at Andrew Jackson.

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Chapter 11 Solutions - Exercise 111 (20 minutes) 1. Cost...

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