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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