BRIEF EXERCISE 11

BRIEF EXERCISE 11 - BRIEF EXERCISE 11-1(a Standards are...

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(a) Standards are stated as a per unit amount. Thus, the standards are materials $2.00 ($1,000,000 ÷ 500,000) and labor $3.20 ($1,600,000 ÷ 500,000). (b) Budgets are stated as a total amount. Thus, the budgeted costs for the year are materials $1,000,000 and labor $1,600,000. BRIEF EXERCISE 11-2 (a) Standard materials price per gallon = $3.50 ($3.20 + $.20 + $.10). (b) Standard materials quantity per gallon = 3 pounds (2.6 + .4). (c) Standard materials cost per gallon = $10.50 ($3.50 X 3). BRIEF EXERCISE 11-3 (a) Standard direct labor rate per hour = $12.00 ($10.00 + $.80 + $1.20). (b) Standard direct labor hours per gallon = 1.6 hours (1.2 + .25 + .15). (c) Standard labor cost per gallon = $19.20 ($12.00 X 1.6). BRIEF EXERCISE 11-4 Total materials variance = $1,731 U (3,300 X $5.07*) – (3,000 X $5.00). Materials price variance = $231 U (3,300 X $5.07) – (3,300 X $5.00). Materials quantity variance = $1,500 U (3,300 X $5.00) – (3,000 X
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BRIEF EXERCISE 11 - BRIEF EXERCISE 11-1(a Standards are...

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