Exam+2+Review+2018+handout+.pdf

A favorable materials price variance coupled with an

This preview shows page 9 - 14 out of 14 pages.

7. A favorable materials price variance coupled with an unfavorable material usage variance would most likely result from a. Labor efficiency problems b. Machine efficiency problems c. The purchase and use of higher than standard quality material d. The purchase and use of lower than standard quality material Chapter 10 Review Setting standards: (1) Standard input per unit of output, (2) Standard price per unit of input. On Standard cost card Ideal vs Practical standards Further subdividing spending variances Rate or Price Variances Efficiency or Quantity Variances If hired less experienced workers than planned… If purchased higher quality materials than planned… Journal entries for Direct Materials and Direct Labor and closing DM and DL variances to COGS
Image of page 9

Subscribe to view the full document.

Chapter 10 sample multiple choice question 8. Cox Company’s direct material costs for the month of January were as follows: Actual quantity purchased 18,000 kg Actual unit purchase price $3.60 per kg Materials price variance $3,600 U Standard quantity allowed for actual production 16,000 kg Actual quantity used 15,000 kg For January, there was a direct materials quantity variance of
Image of page 10
Chapter 10 sample work out problem 9. Reenu Company manufactures wigs out of used dental floss. The variable cost standards for wig production developed by Reenu are as follows, they planned to make 12,500 wigs: Direct materials 3 lbs $3.80/lb $11.40/unit Direct labor 0.75 hours $12/hr $9.00/unit Variable OH 0.75 hours $10/hr $7.50/unit Variable overhead is based on direct labor hours. The actual results for October were as follows: Number of wigs produced 12,500 Direct labor hours incurred 10,200 Pounds of direct materials purchased 42,000 Pounds of direct materials used in prod 38,200 Cost of direct materials purchased $157,920 Direct labor cost $119,700 Variable overhead cost $ 98,600 Do a variance analysis
Image of page 11

Subscribe to view the full document.

Chapter 10 sample work out problem space
Image of page 12
Chapter 10 Appendix Review
Image of page 13

Subscribe to view the full document.

Image of page 14
  • Fall '09
  • Variance, Direct material price variance, Direct Materials and Direct Labor

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern