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Homework Assignment 11 cont

# Homework Assignment 11 cont - Bus 215 Section 08 November 2...

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Bus 215 Section 08 November 2, 2010 Homework Assignment: Chapter 11 Cont. E11-6) 1. Standard price for a kilogram of white chocolate: Purchase Price £7.50 Shipping Cost £0.30 Purchase Discount (0.60) Receiving and Handling Cost £0.04 Standard Price £7.24 2. Standard Quantity of White chocolate for a dozen truffles used in product: Materials Requirements 0.70 Kilograms Allowance for waste 0.03 Kilograms Allowance for rejects 0.02 Kilograms Standard Quantity 0.75 Kilograms 3. Standard Cost of white chocolate: £7.24 x 0.75 = £5.43 per white chocolate E11-7) a. Materials Price Variance = AQ(AP - SP) b. Labor rate variance = AH(AR – SR) 25,000 (0.48 - 0.50) = -500 = \$500 F 4,000(9 – 8) = \$4,000 U Materials Quantity Variance = SP(AQ - SQ) Labor efficiency variances =SR(AH – SH) 0.50 (20,000 – 18,000) = \$1000 U 8(4,000 – 3,900) = \$800 U 2. For materials price variance, the variance is favorable because the actual purchase price was less than the standard purchase price. To understand the materials quantity variance, the amount used

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Homework Assignment 11 cont - Bus 215 Section 08 November 2...

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