ORIE_3150_Homework__11_2009_answers

ORIE_3150_Homework__11_2009_answers - ORIE 3150 Homework...

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ORIE 3150 Homework #11 Due April 22, 2009 1. The following data applies to Wallace Shirt Company’s production facility in Lower Slobodia. Standards (per shirt) Material: 3 yards at $2 per yard Labor: 2 hours at $3 per hour Overhead: $130,000 budgeted, all fixed Actual Data Material: 25,000 yards of material were purchased and used in production. The cost was $2.10 per yard. Labor: 17,000 hours at $2.50 per hour Overhead: $112,000 actual overhead 10,000 shirts were budgeted for the month, but only 9,000 shirts were actually manufactured. a) Find the direct material price variance and the direct material quantity variance. DMPV = AQ(AP – SP) = 25000(2.10 – 2) = $2,500 U DMQV = SP(AQ – SQ) = 2(25000 – 27000) = $4,000 F b) Find the direct labor rate variance and the direct labor quantity variance. LPV = AH(AR – SR) = 17000(2.5 – 3) = $8,500 F LQV = SR(AH – SH) = 3(17000 – 18000) = $3,000 F
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2. Tyra Banks Industries makes swimwear, broken up into Fashion and Competition divisions. During the past year, the financial data for the Competition Division were as follows: Sales $13,600,000 Cost of Goods Sold 7,180,000
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This note was uploaded on 10/25/2010 for the course ORIE 3150 taught by Professor Callister during the Fall '08 term at Cornell University (Engineering School).

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ORIE_3150_Homework__11_2009_answers - ORIE 3150 Homework...

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