Solution to lecture-7 illustration question

Solution to lecture-7 illustration question - SOLUTION TO...

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SOLUTION TO LECTURE-7 ILLUSTRATION QUESTION 11-49 1. Calculation of variances: Direct-material price variance = PQ(AP – SP) = 15,000($2.20* – $2.00) = $3,000 Unfavorable *$2.20 = $33,000 ÷ 15,000 Direct-material quantity variance = SP(AQ – SQ) = $2.00(15,000 – 14,500*) = $1,000 Unfavorable *14,500 lbs. = 725 × 20 lbs. per unit Direct-labor rate variance = AH(AR – SR) = 4,000($18.90* – $18.00) = $3,600 Unfavorable *$18.90 = $75,600 4,000 Direct-labor efficiency variance = SR(AH – SH) = $18.00(4,000 – 3,625*) = $6,750 Unfavorable *3,625 hours = 725 units 5 hours per unit
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Variable-overhead spending variance = actual variable overhead – (AH
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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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Solution to lecture-7 illustration question - SOLUTION TO...

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