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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.) (1)Actual Hours at the Actual Rate = 1,150X\$10 per hour = \$11,500 (2)Actual Hours at Standard Rate = 1,150X\$9.50 per hour = \$10,925 (3)Standard Hours Allowed for Actual Inputr at Standard Rate = 1,200X\$9.50 = \$11,400 Labor Rate Variance = (1)-(2) = \$11,500 - \$10,925 = \$575 Labor Efficiency Variance = (2)-(3) = \$10,925 - \$11,400 = \$-475 Problem 10-16 1.) a.)
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• Winter '08
• BABINEAU
• Direct material price variance, Negative and non-negative numbers, standard price, Board foot, materials price variance

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