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

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