CH10 EXERCISES

CH10 EXERCISES - Chapter 10 review exercises The standard...

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Chapter 10 review exercises The standard and actual prices per pound of raw material are $4.00 and $4.50, respectively. A total of 10,500 pounds of raw material was purchased and then used to produce 5,000 units. The quantity standard allows two pounds of the raw material per unit produced. The actual direct labor wage rate is $8.50 and 4,500 direct labor hours were actually worked during the month. The standard direct labor wage rate is $8.00 and the standard quantity of hours allowed for the actual level of output was 5,000 direct labor hours. a) What was the material quantity variance? Usage Variance= (AQ-SQ)SP per unit: 10500-(2*5000)4= 500*4=2000U b) What was the material price variance? Price=(AP-SP)AQ: 4.5-4*10500 =.5*10500=5250U c) What was the direct labor efficiency variance?(AH-SH)SR= 4500-5000*8=4000F d) What was the direct labor rate variance?(AR-SR)AH= 8.5-8*4500=2250U e) What is the unit standard for direct labor? Unit Standard= Topper Toys has developed a new toy called the Brain buster. The company has a standard cost system to help control costs and has
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CH10 EXERCISES - Chapter 10 review exercises The standard...

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