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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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