Chapter 8 - Presentation Solutions 2009

Chapter 8 - Presentation Solutions 2009 - Chapter 8...

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Unformatted text preview: Chapter 8 Presentation Solutions Brief Exercise 8-2 1. Number of chopping blocks.................................................. 4,000 Number of board feet per chopping block............................ 2.5 Standard board feet allowed................................................ 10,000 Standard cost per board foot................................................ $1.80 Total standard cost............................................................... $18,000 Actual cost incurred.............................................................. $18,700 Standard cost above............................................................. 18,000 Total varianceunfavorable................................................. $ 700 2. Actual Quantity of Input, at Actual Price Actual Quantity of Input, at Standard Price Standard Quantity Allowed for Actual Output, at Standard Price (AQ AP) (AQ SP) (SQ SP) $18,700 11,000 board feet $1.80 per board foot 10,000 board feet $1.80 per board foot = $19,800 = $18,000 Price Variance, $1,100 F Quantity Variance, $1,800 U Total Variance, $700 U Alternatively: Materials price variance = AQ (AP SP) 11,000 board feet ($1.70 per board foot* $1.80 per board foot) = $1,100 F *$18,700 11,000 board feet = $1.70 per board foot. Materials quantity variance = SP (AQ SQ) $1.80 per board foot (11,000 board feet 10,000 board feet) = $1,800 U Chapter 8 Presentation Solutions Page 1 Brief Exercise 8-3 1. Number of meals prepared................................ 6,000 Standard direct labor-hours per meal................ 0.20 Total direct labor-hours allowed......................... 1,200 Standard direct labor cost per hour.................... $9.50 Total standard direct labor cost.......................... $11,400 Actual cost incurred............................................ $11,500 Total standard direct labor cost (above)............ 11,400 Total direct labor variance.................................. $ 100 Unfavorable 2. Actual Hours of Input, at the Actual Rate Actual Hours of Input, at the Standard Rate Standard Hours Allowed for Actual Output, at the Standard Rate (AH AR) (AH SR) (SH SR) 1,150 hours $10.00 per hour 1,150 hours $9.50 per hour 1,200 hours $9.50 per hour = $11,500 = $10,925 = $11,400 Rate Variance, $575 U Efficiency Variance, $475 F Total Variance, $100 U Alternatively, the variances can be computed using the formulas: Labor rate variance = AH(AR SR) = 1,150 hours ($10.00 per hour $9.50 per hour) = $575 U Labor efficiency variance = SR(AH SH) = $9.50 per hour (1,150 hours 1,200 hours) = $475 F Chapter 8 Presentation Solutions Page 2 Brief Exercise 8-4...
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Chapter 8 - Presentation Solutions 2009 - Chapter 8...

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