Review-Variances and budget

# Review-Variances and budget - 15 30,000 October 225,000 70...

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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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## This note was uploaded on 08/26/2011 for the course ACCOUNTING 211 taught by Professor Min during the Three '11 term at Curtin.

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Review-Variances and budget - 15 30,000 October 225,000 70...

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