Variance analysis HW solution - $64,000 (8,000 units x 2...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
1. AQ x AP AQ x SP SQ for AO x SP Moisturizer (Q=ozs.) $18,000 (60,000 oz.)($.25/oz) $15,000 (8,000 units x 9 oz/unit) ($.25/oz.) (72,000 oz.)($.25/oz) $18,000 $3,000 U DM Price Variance $3,000 F DM (Moisturizer) Quantity Variance Fragrance (Q=ozs.) $41,000 (45,000 oz.)($0.75/oz) $33,750 (8,000 units x 5 oz/unit) ($0.75/oz.) (40,000 oz.)($0.75/oz) $30,000 7,250 U DM Price Variance $3,750 U DM (Fragrance) Quantity Variance Mixing (Q=hr. mixing) $50,000 (18,500 hr.)($2/hr.) $37,000 (8,000 units x 3 hr./unit) ($2/hr.) (24,000 hr.)($2.00/hr.) $48,000 13,000 U DL (Mixing) Rate Variance 11,000 F DL (Mixing) Efficiency Variance Compounding (Q=hr. compounding) $72,000 (16,000 hr.)($4/hr)
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: $64,000 (8,000 units x 2 hr./unit) ($4/hr.) (16,000 hr.)($4/hr.) $64,000 $8,000 U DL (Compounding) Rate Variance $0 DL (Compounding) Efficiency Variance VOH (Q=total hr.) $126,000 (34,500 hr.)($4/hr.) $138,000 (8,000 units x 5 hr./unit) ($4/hr.) (40,000 hr.)($4/hr.) $160,000 $12,000 F VOH Spending Variance $22,000 F VOH Efficiency Variance Actual FOH Budgeted FOH Applied FOH = SQ for AO x SP FOH $108,500 10,000 x $15.00 $150,000 (8,000 units x 5 hr./unit) ($3/hr.) (40,000 hr.)($3/hr.) $120,000 $41,500 F FOH Budget or Spending Variance $30,000 U FOH Production Volume Variance...
View Full Document

Ask a homework question - tutors are online