week 9

# week 9 - 11-21 Comprehensive Standard Cost Variances1 Redo...

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Unformatted text preview: 11-21 Comprehensive Standard Cost Variances1. Redo the standard cost card in a clearer, more usable format by detailing the variable and fixed overhead cost elements.StandardStandardStandardQuantityPriceCostDirect materials (pounds)4\$2.60 \$10.40 Direct labor (direct labor hours)2\$9 \$18.00 Variable overhead2\$3.80 \$7.60 Fixed Overhead2\$7.00 \$14.00 Standard cost per unit\$50.00 2. Prepare an analysis of the variances for materials and labor for the year.Direct MaterialsActual Costs30,000X \$2.5030,000X \$2.60\$75,000 \$78,000 (\$3,000)FDirect MaterialsActual Costs20,000 X \$2.5020,000 X \$2.604,800 X 4 X \$2.60\$50,000 \$52,000 \$49,920 (\$2,000)F\$2,080U Direct LaborActual Costs10,000 X \$8.6010,000 X \$9.004,800 X 2 X \$9\$86,000 \$90,000 \$86,400 (\$4,000)F\$3,600 3. Prepare an analysis of the variances for variable and fixed overhead for the year.4. What effect, if any, does the choice of a denominator activity level have on standard unit costs? Is the volume variance a controllable variance from a spending point of view? Explain.costs?...
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## This note was uploaded on 03/16/2012 for the course ACC 571 taught by Professor Wills during the Spring '09 term at Strayer.

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week 9 - 11-21 Comprehensive Standard Cost Variances1 Redo...

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