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Ch.9- Solutions

# Ch.9- Solutions - Chapter9 StandardCosts BriefExercise92 1...

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Chapter 9 Standard Costs Brief Exercise 9-2  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  Varianc e,  RM9,00 0 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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Brief Exercise 9-3  1. Number of meals prepared ........................................ 4,000 Standard direct labor-hours per meal ........................   ×  0.25 Total direct labor-hours allowed ...............................  1,000 Standard direct labor cost per hour ............................ ×  \$9.75 Total standard direct labor cost ................................. \$9,750 Actual cost incurred ................................................... \$9,600 Total standard direct labor cost (above) ....................   9,750     Total direct labor variance ......................................... \$        150     Favorable
2. Actual Hours of  Input, at the  Actual Rate Actual Hours of Input,  at the Standard Rate Standard Hours  Allowed for Output, at  the Standard Rate (AH × AR) (AH × SR) (SH × SR) 960 hours  × \$10.00 per hour 960 hours  × \$9.75 per hour 1,000 hours  × \$9.75 per hour = \$9,600 = \$9,360 = \$9,750 Rate  Varianc e,  \$240 U Efficiency Variance,  \$390 F Total Variance,  \$150 F Alternatively, the variances can be computed using the formulas: Labor rate variance = AH(AR – SR) = 960 hours (\$10.00 per hour – \$9.75 per hour) = \$240 U Labor efficiency variance = SR(AH – SH) = \$9.75 per hour (960 hours – 1,000 hours) = \$390 F

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Brief Exercise 9-4  1. Number of items shipped ......................................................... 120,000 Standard direct labor-hours per item .......................................   ×  0.02     Total direct labor-hours allowed .............................................  2,400 Standard variable overhead cost per hour ............................... ×  \$3.25 Total standard variable overhead cost ..................................... \$      7,800     Actual variable overhead cost incurred ................................... \$7,360 Total standard variable overhead cost (above) ........................   7,800     Total variable overhead variance ............................................. \$        440     Favorable
2. Actual Hours of  Input, at the  Actual Rate Actual Hours of Input,  at the Standard Rate Standard Hours  Allowed for Output, at  the Standard Rate (AH × AR) (AH × SR) (SH × SR) 2,300 hours  ×  \$3.20 per hour* 2,300 hours  ×  \$3.25 per hour  2,400 hours  ×  \$3.25 per hour  = \$7,360 = \$7,475 = \$7,800 Variabl Overhe ad Rate  Varianc e, \$115  F

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Ch.9- Solutions - Chapter9 StandardCosts BriefExercise92 1...

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