Review-Variances and budget

Review-Variances and budget - 15% 30,000 October....

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PROBLEM 10-44 1. Direct-material price variance = (PQ × AP) – (PQ SP) = $608,000 – (320,000 $1.75) = $608,000 – $560,000 = $48,000 Unfavorable 2. Direct-material quantity variance = SP(AQ – SQ) = $1.75(285,000 – 304,000*) = $33,250 Favorable *Standard quantity allowed = 38,000 units 8 kilograms per unit = 304,000 kilograms 3. Direct-labor rate variance = (AH AR) – (AH SR) = $75,600* – (10,000 $8.00) = $4,400 Favorable *90% $84,000 = $75,600 4. Direct-labor efficiency variance = SR(AH – SH) = $8.00(10,000 – 9,500*) = $4,000 Unfavorable *38,000 units .25 hour per unit = 9,500 hours
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EXERCISE 9-22 1. Cash collections in October: Month of Sale Amount Collected in October July. .......................... $150,000 × 4% $ 6,000 August. ..................... 175,000 10% 17,500 September. ............... 200,000
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Unformatted text preview: 15% 30,000 October. .................... 225,000 70% 157,500 Total. ......................... $211,000 Notice that the amount of sales on account in June, $122,500 was not needed to solve the exercise. 2. Cash collections in fourth quarter from credit sales in fourth quarter. Amount Collected Month of Sale Credit Sales Octobe r Novemb er Decemb er October. .......................... $225,0 00 $157,5 00 $ 33,750 $ 22,500 November. ....................... 250,00 175,000 37,500 December. ....................... 212,50 148,75 Total. ............................... $157,5 00 208,75 $208,75 Total collections in fourth quarter from credit sales in fourth quarter. . $575,00...
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Review-Variances and budget - 15% 30,000 October....

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