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HW67_68sol

# HW67_68sol - P A S S S \$2.75 \$2.90 \$2.90 \$2.90 x x x x Q Ap...

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Problem 67 Material variances P A S S S \$14.00 \$15.00 \$15.00 \$15.00 x x x x Q Ap Ap Au S 1,050 1,050 1,080 1,030 (1/2 lb.*2,060) = = = = 14,700 15,750 16,200 15,450 \$1,050 F \$750 U MPV MQV \$300 F TMV 2% Threshhold 2%*\$15,450 = \$309 Investigate MQV - production supervisor Investigate MPV - purchasing manager Labor variances P A S S \$11.75 \$12.00 \$12.00 x x x Q A A S 2,500 2,500 2,472 (1.2*2060) = = = 29,375 30,000 29,664 \$625 F \$336 U LRV LEV \$289 F TLV 2% Threshhold 2%*\$29,664 = \$593 Investigate LRV - production supervisor LEV is not material

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Problem 68 Direct materials 2.4*\$2.90 = \$6.96 Direct labor 0.6*\$10 = 6.00 VOH \$18,000/3,000 = 6.00 FOH \$4,050/3,000 = 1.35 Standard cost \$20.31 Variable overhead: \$18,000 = \$6.00 3,000 Fixed overhead \$4,050 = \$1.35 Since total budgeted overhead is \$22,050, and 3200= variable was determined to be \$18,000, the balance of \$4,050 must be fixed. Material variances
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Unformatted text preview: P A S S S \$2.75 \$2.90 \$2.90 \$2.90 x x x x Q Ap Ap Au S 8,000 8,000 8,400 7,440 (2.4*3100) = = = = 22,000 23,200 24,360 21,576 \$1,200 F \$2,784 U MPV MQV \$1,584 U TMV 2% Threshhold 2%*\$21,576 = \$432 Investigate MQV - production supervisor Investigate MPV - purchasing manager C and D. Calculate all material variances. If 2% is the threshold for materiality, indicate which variances should be investigated and who is responsible for each. Labor variances P A S S \$11.00 \$10.00 \$10.00 x x x Q A A S 1,600 1,600 1,860 (.6*3,100) = = = 17,600 16,000 18,600 \$1,600 U \$2,600 F LRV LEV \$1,000 F TLV 2% Threshhold 2%*\$18,600 = \$372 Investigate LRV - production supervisor Investigate LEV - production supervisor A and B. Calculate all labor variances. If 2% is the threshold for materiality, indicate which variances should be investigated and who is responsible for each....
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