Chapter 10 Sol - Part 1

Chapter 10 Sol - Part 1 - Exercise1011(20minutes) 1....

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Exercise 10-11  (20 minutes) 1. Actual Quantity of  Inputs, at  Actual Price Actual Quantity of  Inputs, at  Standard Price Standard Quantity  Allowed for Output,  at Standard Price (AQ × AP) (AQ × SP) (SQ × SP) 20,000 grams ×  $2.40 per gram 20,000 grams ×  $2.50 per gram 18,000 grams* ×  $2.50 per gram = $48,000 = $50,000 = $45,000 Price Variance,  $2,000 F Quantity Variance,  $5,000 U Total Variance, $3,000 U *2,500 units × 7.2 grams per unit = 18,000 grams Alternatively: Materials Price Variance = AQ (AP – SP)  20,000 grams ($2.40 per gram – $2.50 per gram) = $2,000 F Materials Quantity Variance = SP (AQ – SQ) $2.50 per gram (20,000 grams – 18,000 grams) = $5,000 U
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Exercise 10-11  (continued) 2. Actual Hours of  Input, at the  Actual Rate Actual Hours of  Input, at the  Standard Rate Standard Hours  Allowed for Output,  at the Standard Rate (AH × AR) (AH × SR) (SH × SR) $10,800 900 hours ×  $10 per hour 1,000 hours* ×  $10 per hour = $9,000 = $10,000 Rate Variance,  $1,800 U Efficiency Variance, 
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This note was uploaded on 12/04/2011 for the course ADM 2341 taught by Professor Managerialaccounting during the Spring '07 term at University of Ottawa.

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Chapter 10 Sol - Part 1 - Exercise1011(20minutes) 1....

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