Demo_WP Chapter 8

Demo_WP Chapter 8 - Demos Chapter 8 Demo Problem 8-1...

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8-1 Demos Chapter 8 Demo Problem 8-1 / Character of Variances Required Compute variances for the items shown in the following list and indicate whether each variance is favorable (F) or unfavorable (UF). Item Budget Actual Variance F or UF Selling and Admin. Exp. \$ 29,000 \$ 27,000 Sales Revenue \$310,000 \$325,000 Materials Price \$2.00 per lb. \$2.10 per lb. Cost of Goods Sold \$125,000 \$100,000 Materials Purchases \$250,000 \$265,000 Materials Usage 6,000 lbs. 5,800 lbs. Sales Price \$550 each \$500 each Labor Rate \$8.10 per hr. \$7.95 per hr. Production Volume 950 units 900 units Labor Usage \$ 96,000 \$ 97,000 Research and Dev. Exp. \$ 22,000 \$ 25,000

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8-2 Demo Problem 8-2 Sales Volume and Flexible Budget Variances The following data apply to chairs made by the Western Chair Company: Price and Variable Costs Per Unit: Standard Actual Sales Price \$62.00 \$60.00 Direct Materials Cost 16.00 16.34 Direct Labor Cost 12.00 10.92 Overhead Cost 14.00 14.20 General, Selling, and Administrative (G,S,&A) Cost 8.00 7.00 Expected Fixed Costs:
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This note was uploaded on 02/22/2012 for the course BUAD 2050 taught by Professor Nicholasw.schroeder during the Spring '09 term at Toledo.

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Demo_WP Chapter 8 - Demos Chapter 8 Demo Problem 8-1...

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