65593966-Hilton-Ch-10-Select-Solutions

65593966-Hilton-Ch-10-Select-Solutions - Select Solutions...

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Select Solutions to Ch 10 10-26 Responses will vary widely on this question. Here are some possibilities for a bank: • Financial: (a) profit; (b) cost of back-office (i.e., administrative) operations. • Internal operations: (a) number of transaction errors; (b) employee retention and advancement. • Customer: (a) local market share; (b) number of repeat customers. • Innovation and learning: (a) new financial products; (b) employee suggestions received and implemented. Lead measures, such as market share or new financial products, show how well the bank is doing now in areas that will affect financial performance in the future. Lag measures, such as the bank’s profits, measure the bank’s financial performance. Lag measures are the result of previous efforts in the bank’s customer, internal operations, and learning and innovation perspectives. EXERCISE 10-32 (30 MINUTES) DIRECT-MATERIAL PRICE AND QUANTITY VARIANCES ACTUAL MATERIAL COST STANDARD MATERIAL COST Actual Quantit y × Actual Price Actual Quantit y × Standa rd Price Standard Quantity × Standa rd Price 240,00 0 kilogra ms purcha sed × $.62 per kilogr am 240,00 0 kilogra ms purcha sed × $.60 per kilogra m 200,000 kilogram s allowed × $.60 per kilogra m $148,800 $144,000 $120,000 $4,800 Unfavorable Direct-material price variance
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210,00 0 kilogra ms used × $.60 per kilogra m $126,000 $6,000 Unfavorable Direct-material quantity variance EXERCISE 10-32 (CONTINUED) DIRECT-LABOR RATE AND EFFICIENCY VARIANCES ACTUAL LABOR COST STANDARD LABOR COST Actual Hours × Actual Rate Actual Hours × Standa rd Rate Standard Hours × Standa rd Rate 13,000 hours used × $12.20 per hour 13,000 hours used × $12.00 per hour 12,500 hours allowed × $12.00 per hour $158,600 $156,000 $150,000 $2,600 Unfavorable $6,000 Unfavorable Direct-labor rate variance Direct-labor efficiency variance $8,600 Unfavorable Direct-labor variance PROBLEM 10-43 (25 MINUTES) 1. Direct-material price variance = (PQ × AP) (PQ SP) = (36,000 × $1.38) – (36,000 × $1.35) = $49,680 – $48,600 = $1,080 Unfavorable
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2. Direct-material quantity variance = (AQ × SP) (SQ SP) = (19,000 × $1.35) – (20,000* × $1.35) = $25,650 - $27,000 = $1,350 Favorable *1,000 units × 20 yards per unit = 20,000 yards 3. Direct-labor rate variance = (AH AR) (AH SR) = (4,200 × $9.15) – (4,200 × $9.00) = $38,430 – $37,800 = $630 Unfavorable 4. Direct-labor efficiency variance = (AH SR) (SH SR) = (4,200 × $9.00) – (4,000* × $9.00) = $37,800 – $36,000 = $1,800 Unfavorable *1,000 units × 4 hours per unit = 4,000 hours PROBLEM 10-45 (15 MINUTES) Direct Material Initial Mix Unit Cost Standar d Material Cost Nyclyn. ...................................... 12 kg 4.35 rea l 52.20 re al Salex. ........................................ 9.6 ltr 5.40 rea l 51.84 re al Protet. ....................................... 5 kg 7.20 rea l 36.00 r eal Standard material cost for each 10-liter container. ....... 140.04 r
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65593966-Hilton-Ch-10-Select-Solutions - Select Solutions...

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