Solution for Exam 2 Samples

# Solution for Exam 2 Samples - × SR) = \$142,245 - (8,700 ×...

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1. 2 a. Materials price variance = (AQ × AP) - (AQ × SP) = \$90,345 - (5,700 × \$15.60) = \$1,425 U b. Materials quantity variance = SP(AQ - SQ*) = \$15.60(5,200 - 5,280) = \$1,248 F *SQ = Standard quantity per unit × Actual output = 1.0 × 5,280 = 5,280 3 a. Labor rate variance = (AH × AR) - (AH × SR) = \$59,470 - (3,800 × \$15.50) = \$570 U b. SH = Standard hours per unit × Actual output = 0.3 × 12,800 = 3,840 Labor efficiency variance = SR(AH - SH) = \$15.50(3,800 - 3,840) = \$620 F 4. a. Variable overhead rate variance = (AH × AR) - (AH
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Unformatted text preview: × SR) = \$142,245 - (8,700 × \$16.05) = \$2,610 U SH = Standard hours per unit × Actual output = 3.3 × 2,600 = 8,580 b. Variable overhead efficiency variance = SR(AH - SH) = \$16.05(8,700 - 8,580) = \$1,926 U 5 a. Spending variance = Actual fixed manufacturing overhead cost - Budgeted fixed manufacturing overhead cost = \$41,740 - \$42,400 = \$660 F b. Volume variance = Fixed portion of the predetermined overhead rate × (Denominator hours - Standard hours allowed) = \$26.50 × (1,600 - 2,000) = \$10,600 F...
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## This note was uploaded on 11/09/2010 for the course ACCT 301 taught by Professor Lynn during the Spring '10 term at University of Baltimore.

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