Assign 7-4 - 3100 F 5400 U 10620 U 1840 F 3700 F 310 F The...

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Problem 8-12A Direct Materials (AQ* AP) (AQ* AP) (AQ* AP) 62000*1.75 62000 * 1.80 48000* 1.8 =108,500 =111,600 =86400 51,000*1.80 = 91,800 Price Variance is 3100 F and Quantity Variance is 5400 U * The company bought goods at a good price, but the goods were not used efficiently. Direct Labor (AH* AR) (AH* SR) (SH* SR) 11800*10.1 11800*9.2 12000*9.2 =119180 =108560 =110400 Total variance is 8780 U * Company paid more money for labor, but they actually produced more efficiently Direct Overhead (AH* AR) (AH* SR) (SH* SR) 19240 7400*3.10 7500*3.10 =22940 = 23250 Total Variance is 4010 F * Overhead was both paid efficiently and used efficiently.
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Unformatted text preview: 3100 F 5400 U 10620 U 1840 F 3700 F 310 F The 2 most significant variances we learnt in this table would be the direct labor and the direct overhead. We can see that the company paid more labor maybe because they were using spets to do the job, but they were doing a better job and it was more efficient. However, the total variance was still unfavorable meaning, they were probably better off with old set of people. Another number would be the direct overhead. Overhead is paid for and is being used very efficiently....
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Assign 7-4 - 3100 F 5400 U 10620 U 1840 F 3700 F 310 F The...

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