CH24HW

CH24HW - Problem 24-1A Part 1 Direct Materials Variances...

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Problem 24-1A Part 1 Direct Materials Variances Direct materials cost variances Actual units at actual cost [1,000,000 lbs. @ $4.25]. ................ $4,250,000 Standard units at standard cost [1,050,000 lbs. @ $4.00]. ....... 4,200,000 Direct material cost variance. ..................................................... $ 50,000 U Direct Materials Price and Quantity Variances Actual Cost AQ x AP AQ x SP Standard Cost SQ x SP 1,000,000 x $4.25 1,000,000 x $4.00 1,050,000 x $4.00 $4,250,000 $4,000,000 $4,200,000 $250,000 U (Price variance) $200,000 F (Quantity variance) $50,000 U (Total materials variance) Part 2 Direct Labor Variances Direct labor cost variances Actual units at actual cost [250,000 hrs. @ $7.75]. ................... $1,937,500 Standard units at standard cost [252,000 hrs. @ $8.00]. ......... 2,016,000 Direct labor cost variance. .......................................................... $ 78,500 F Direct Labor Rate and Efficiency Variances Actual Cost AH x AR AH x SR Standard Cost SH x SR 250,000 x $7.75 250,000 x $8.00 252,000 x $8.00 $1,937,500 $2,000,000 $2,016,000
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$62,500 F (Rate variance) $16,000 F (Efficiency variance) $78,500 F (Total labor variance)
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Problem 24-1A (Continued) Part 3 Overhead Variances Controllable variance Actual overhead [$1,960,000 + $1,200,000]. ............................. $3,160,000 Applied overhead [from flexible budget, 70% capacity] . ....... 3,276,000
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CH24HW - Problem 24-1A Part 1 Direct Materials Variances...

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