Demonstration Problems for Chapter 8

Demonstration Problems for Chapter 8 - Demonstration...

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Demonstration Problems for Chapter 8 Demonstration 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 Administrative Expenses $ 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 hour $7.95 per hour Production Volume 950 units 900 units Labor Usage $96,000 $97,000 Research and Development Expense $22,000 $25,000 Demonstration Problem 8-2 Activity 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
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Demonstration Problems for Chapter 8 - Demonstration...

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