Acc334F2010-MT#1C-solution

# Acc334F2010-MT#1C-solution - ACCOUNTING 3334 Fall 2010...

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ACCOUNTING 3334 - Fall 2010 MID-TERM EXAM # 1C Suggested Solution Dr. Jeff Power Name _________________________________ Student Number ______________ NOTES: ANSWER ALL QUESTIONS IN THE SPACE PROVIDED (Back of page if necessary) DO NOT SEPARATE THE PAGES OF THE EXAM. YOU HAVE 75 MINUTES TO COMPLETE THE EXAM SHOW ALL OF YOUR CALCULATIONS FOR POSSIBLE PART MARKS Problem #1 (35 points) Your boss has asked you to present the variance report to the division manager but has left town and the report is not complete. Below is the information you have available. Standard # of kilos of material per unit of output 4 Standard price per kilo of materials \$ 4 Standard # of direct labour hours per unit of output a Standard direct labour rate per hour \$ 10 Budgeted # of units to be produced 7,500 Actual # of units produced b Actual # of kilos of material purchased and used 29,000 Actual amount paid for materials c Actual # of direct labour hours worked d Actual amount paid for direct labour \$ 396,000 Actual direct labour rate per hour \$ 9 Actual amount paid for fixed overhead \$144,000 Materials price variance \$ 8,700 F Materials quantity variance \$ 4,000 U Labour rate variance e Labour efficiency variance \$ 8,000 F Fixed overhead budget variance \$ 6,000 F Fixed overhead production volume variance f Note: the company uses Direct Labour Hours (DLH) to apply overhead. Required: (1) Calculate the missing figures before your meeting – which is in 30 minutes. (Show calculations clearly for possible part marks). a) 6.4 hours b) 7,000 units c) \$3.70 per kg (or \$107,300 in total) d) 44,000 hours e) \$44,000 F f) \$10,000 U These answers may be explained in two different ways. You could use the table approach or the formula approach. For the table approach all the information that is given is in italics and the amounts calculated are in bold. We work from what we know to what we don’t know. Note that it may be more efficient not to try and solve all of the parts in order. Direct Materials:

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Acc334F2010-MT#1C-solution - ACCOUNTING 3334 Fall 2010...

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