work 23 by Ut0350as

VIEWS: 14 PAGES: 9

									S 23-6
Actual price per pound                                   =
Standard price per pound                                 =
Actual quantity                                          =
Standard quantity allowed for actual output              =

Direct materials price variance:
          Actual price              Standard price                           Actual quantity
                           −                                 ×
         per input unit             per input unit                              of input

         = ______________________

Direct materials efficiency variance:
      Actual quantity               Standard quantity of input                   Standard price
                           −                                             ×
         of input                   allowed for actual outputs                   per input unit

         = ______________________

Direct materials flexible budget variance:
         Direct materials price variance                         =
         Total direct materials flexible budget variance         =
         Direct materials efficiency variance                    =




S 23-7
Actual price per direct labor hour              =
Standard price per direct labor hour            =
Actual quantity of direct labor hours           =
Standard quantity of direct labor               =


Direct labor price variance:
          Actual price                  Standard price                   Actual quantity
                               −                             ×
         per input unit                 per input unit                      of input

         = ______________________


Direct labor efficiency variance:
         Actual quantity            Standard quantity of input                  Standard price
                           −                                         ×
            of input                allowed for actual outputs                  per input unit

         = ______________________
Direct labor flexible budget variance:
         Direct labor price variance                   =
         Total labor efficiency variance               =
         Total direct labor flexible budget variance   =




S 23-8
                    Variance                               Responsible Department
Materials price variance
Materials efficiency variance
Labor price variance
Labor efficiency variance

Material variances:




Labor variances:




S 23-9
Standard variable                                  Static budget variable overhead
                                    =
overhead rate                                 Static budget quantity of allocation base

                                   =


Standard fixed                                      Static budget fixed overhead
                                    =
overhead rate                                 Static budget quantity of allocation base

                                   =
S 23-10
                                                   Longman, Inc.
                                          Manufacturing Overhead Variances
                                                                 Flexible Budget                            Std Overhead
                                                Actual         Overhead for Actual                           Allocated to
                                            Overhead Cost      Number of Outputs                             Production
    Variable overhead                                $10,400
    Fixed overhead                                     2,800
    Total overhead                                   $13,200



a
    Standard quantity of allocation                                                 Standard variable
                                                                              ×
    base allowed for actual outputs                                                   overhead rate

          = ______________________

b
    Given in Exercise.

c
    Standard quantity of allocation                                          ×      Standard fixed
    base allowed for actual outputs                                                 overhead rate

          = ______________________




E 23-20
Although not required, it is helpful to begin by organizing the materials and labor data as follows:

Direct materials:
Actual price per foot ...................................................................................        $1.05
Standard price per foot ...............................................................................         $1.10
Actual quantity used                                                                                           145,000 ft
Standard quantity allowed (200,000 × 7)                                                                        140,000 ft


Direct labor:
Actual price per hour ..................................................................................        $14.00
Standard price per hour .............................................................................           $13.00
Actual quantity used                                                                                           450 hours
Standard quantity allowed (200,000 × 0.025)                                                                    500 hours
Now we can compute the variances:
Price Variances:
                               Actual price            Standard price               Actual quantity
   Price variance     =                        −                            ×
                              per input unit           per input unit                  of input
 Direct materials
                      =
  price variance
 Direct labor
                      =
 price variance


Efficiency Variances:
      Efficiency            Actual quantity             Standard quantity             Standard price
                        =                          −                            ×
       variance                 of input                    of input                  per input unit
 Direct materials
                    =
efficiency variance
     Direct labor
                        =
efficiency variance

Explain:




E 23-22
Materials (explanation)




Labor (explanation)




Overhead (Explanation)
E 23-23
                                   Tulsa Paint Company
                             Manufacturing Overhead Variances
 Total overhead variance:
    Actual overhead cost
    Std overhead allocated to (actual) production
    Total overhead variance
 Overhead flexible budget variance:
    Actual overhead cost
   Flexible bdgt overhead for actual
    Overhead flexible budget variance
 Production volume variance:
    Flexible budget overhead for actual outputs
    Std overhead allocated to (actual) production
        Production volume variance




E 23-24
                                  Odessa Outfitters, Inc.
                             Standard Cost Income Statement
                                Month Ended May 31, 2008
 Sales revenue                                                  $560,000
 Cost of goods sold at standard cost
 Manufacturing cost variances:
        Direct materials price variance
    Direct materials efficiency variance
    Direct labor price variance
    Direct labor efficiency variance
    Overhead flexible budget variance
    Production volume variance
    Total manufacturing variances
 Cost of goods sold at actual cost
 Gross profit


Explain:
P 23-25A … Req. 1
                                    Cellular Technologies
                             Income Statement Performance Report
                                 Month Ended March 31, 2009
                                               Flexible Budget
                 Actual Results   Flexible        for Actual      Sales          Static
                   at Actual       Budget         Number of      Volume         (Master)
                     Prices       Variance      Output Units     Variance       Budget
Output units
(capacitors)           11,000          -0-           11,000
Sales revenue        $257,000                      $253,000
Variable costs        134,250                       132,000

Fixed costs            55,575                        54,000                 0
Total costs           189,825                       186,000
Oper. income         $ 67,175                      $ 67,000


Req. 2
Selling 2,000 units more than the static budget level of 9,000 increased or decreased
Cellular Technologies’ operating income by $_______________.



Req. 3 … Skip – do NOT complet this Req




P 23-27A … Req. 1

Standard labor cost = $___________________

Actual labor cost = $_____________________

Let DLH = actual number of direct labor hours worked
Actual labor cost = Actual labor rate × DLH

Solving for DLH: $________________ hours
Req. 2
                             Actual price    Standard price    Actual quantity
Price variance =                           −                 ×
                            per input unit    per input unit      of input
Direct labor
                        =
price var.


Efficiency              Actual quantity   Standard quantity   Standard price
                    =                   −                   ×
variance                   of input           of input         per input unit
Direct labor
             =
effic. var.


The variances suggests that the manager may:




P 23-29A … Req.1
Although not required, it may be helpful to begin by organizing the data:

Direct Materials:
Actual price ................................................................................ $0.21/part
Standard price ............................................................................ $0.16/part
Actual quantity ..................................................................... 220,000 parts
Standard quantity (106,000 cases × 2 parts/case) ............. 212,000 parts


Direct labor:
Actual price ..................................................................................... $8.10/hr.
Standard price ................................................................................. $8.00/hr.
Actual quantity .............................................................................. 1,700 hrs.
Standard quantity (106,000 cases × 0.02 hr./case) ..................... 2,120 hrs.
Price Variances:
                     Actual price       Standard price        Actual quantity
Price variance =                    −                     ×
                     per input unit      per input unit          of input
Dir. materials
               =
price var.
Direct labor
                 =
price var.



Efficiency Variances:
Efficiency             Actual qty       Standard qty          Standard price
                 =                  −                     ×
variance                of input          of input             per input unit
Dir. materials
                 =
effic. Var.
Direct labor
                 =
effic. Var.



Req. 2
                                          HeadSmart
                               Computation of Overhead Variances
Total overhead variance:
   Actual overhead cost
   Standard overhead allocated to (actual)
       production (106,000 units × $0.52)a
   Total overhead variance
Overhead flexible budget variance:
   Actual overhead cost
   Flexible budget overhead for actual outputsb
   Overhead flexible budget variance
Production volume variance:
   Flexible budget overhead for actual outputs
   Standard overhead allocated to (actual) production
   Production volume variance
Req. 3
                                         HeadSmart
                               Standard Cost Income Statement
                               Month Ended September 30, 2008
Sales revenue (106,000 × $1.50)
Cost of goods sold at standard cost
Manufacturing cost variances:
   Direct materials price variance
   Direct materials efficiency variance
   Direct labor price variance
   Direct labor efficiency variance
   Overhead flexible budget variance
   Production volume variance
   Total manufacturing cost variances
Cost of goods sold at actual cost
Gross profit



Req. 4
HeadSmart’s management knew that using more-experienced workers would result in:

								
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