Exercises 10-2 and 10-3

Exercises 10-2 and 10-3 - Exercise 10-2 1.) Chopping Blocks...

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Exercise 10-2 1.) Chopping Blocks 4,000 Standard Board feet of hardwood per block 2.5 Board feet needed 10,000 Standard Price per board foot of hardwood $1.80 Total cost of hardwood $18,000.00 This is $700 less than the price that Harmon Household Products, Inc. paid. 2.) (1)Actual Quantity of Input, at actual price 11,000 X $1.70 per board = $18,700 (2)Actual Quantity of Input at Standard Price 11,000 X $1.80 per board = $19,800 (3)Standard Quantity allowed for actual input at standard price 10,000 X $1.80 per board = $18,000 Materials Price Variance = (1)-(2) = $18,700 - $19,800 = $-1,100 Materials Quantity Variance = (2)-(3) = $19,800 - $18,000 = $1,800 Exercise 10-3 1.) Total Meals 6,000 Labor hours needed per meal 0.2 Total labor hours needed 1200 cost per hour $9.50 total cost $11,400.00 11,500 - 11,400 = 100 The standard cost for 6000 meals is 100 dollars less than what AirMeals, Inc. paid. 2.)
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This note was uploaded on 11/21/2011 for the course BUS 215 taught by Professor Babineau during the Winter '08 term at Cal Poly.

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