Ch.9- Solutions - Chapter 9 Standard Costs Brief Exercise...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 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 varianceunfavorable......................................... 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 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)...
View Full Document

This note was uploaded on 12/11/2010 for the course ACC ACC taught by Professor Laila during the Spring '10 term at American University of Sharjah.

Page1 / 18

Ch.9- Solutions - Chapter 9 Standard Costs Brief Exercise...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online