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    9 views19 pages

    Accy261 Ch16examprephandout Solutionscan PDF - Compress

    Uploaded by

    Mark Lawrence Yusi

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
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    of 19
    Chapter 16 ~ Variance Analysis Exam Prep Handout 669. The following information summarizes the standard cost for producing one metal tennis racket frame. in addition, the variances for one month's production are given. Assume that all inventory ‘eccounts have zero balances at the baginning of the month. Standard Cost Standard —Pec Unit Materials $4.00 Direct Labor 2 hrs. @ $2.60 5.20 Factory Overhead: Variable 1.80 Fixed 5.00 $16.00 Variances: ‘Monthly Cosis $8,400 10,920 3,780 10.500 $23,600 ‘What were the actual direct labor hours worked during the month? A500, B.4\800, €.4,200. D.4,000. 3.400. Variance Analysis Template Actual Costs ‘Actual inputs at Standard Prices anaes OUST Alone for Actual Outpt at Standard Price Direct Materials, Se aance Peel « (3, 20D lo, 9120 jes fate Vanance Ficiency Vanance TE aos os oe ol ee 1a aoa re hit eel [get Variance: Cae ance 69. The following information summarizes the standard cost for producing one metal tennis racket {rame. In addition, the variances for one month's production are given, Assume that ail Inventory accounts have zero balances at the begining ofthe month. ‘Standard Cost Standard Per Unit ‘Monthly Cosis ‘Materials $4.00 $8,400 Direct Labor 2 hrs. @ $2.60 520 10,920 Factory Overhead: Variable 180 3,780 Fixed 5.00 10.500 $1020 0) ‘Variances: Material price (244.75 unfavorable ‘Material quantity $00.00 unfavorable Labor rete 520,00 favorable Laborefficieney 2,080.00 unfavorable What were the actual direct labor hours worked during the month? ‘A 5000. 8. 4,00, ©, 4200, D, 4,000. E, 3,400, ‘$10,920 + $2,080 = $13,000 + $2.60 = 5,000 direct labor hours: ANoSB.Anaite ACPA FM. Decision ag Boor: Ana}ee Deut Har: ‘saing Onset 1625 Concote an use varie cst vases. Topi Awa: Drect L360) 70. The following information summarizes the standard cost for producing one metal tennis racket ‘frame. in addition, the variances for one month's production are given. Assume thet all inventory ‘accounts have zero balances at the beginning of the month. ‘Standard Cost Direct Labor 2 brs. @ $2.60 10,920 Factory Overhead: Variable 180 3,780 Fixed 5.00 10,300 $16.00 233,000 Variances: Material price 244.75 unfavorable “Material quantity Labor rate 520.00 Laborefficiency 2,080.00 unfavorable ‘What was the actual quantity of materials used during the month? A2198. B. 2,100. ©.2,225, 0.1,975. Variance Analysis Template ‘et Sandad Oa Allowed for Actual uiput at Stanceara ‘Actual Inputs at Standard Prices oveet a rate ete Cae fig variance Cpe wane Cs wom! BRCS. 70, The ollowng information summarizes the standard cost for producing one metal tennis racket ‘ame. In addition, the variances for ene month's production are given. Assume that al Inventory accounts have zero balances at the beginning of the month. Standard Cost. Standard —Per Unit Materials $4.00 $4,400 Direct Labor 2 xs. @ $2.60 5.20 10,920 Factory Ovethead: Variable 1.80 3,780 Fixed 30 la.se0 316.00 Lay Variances: ‘Material price -244.75 unfavorable ‘Material quantity $00.00 unfavorable Laborrave 520,00 favorable Laborefficiency 7,080.00 unfavorable (What was the actual quantity of materials used during the ment? A 2.158, 8. 2,100, © 2.225. D, 1,975. '$8,400 + $500 = $8,000 + $4.00= 2225 A808: Anti AICPAPN: Dacron Mating Boorse Diteunye 3 Har. -Leamnng Object: 16-08 Carovie ana ese rib cos arances Toole ea Direct Metra 79, Given the following information in standard costing Standard 16,000 po ay ‘Actual 15,800 hours ‘What Is the total direct labor cost variance? A. $3,160 favorable. B. $3,160 unfavorable. C. $2,360 favorable. D. $2,360 unfavorable, Variance Analysis Template Allowed for Actual Actual Inputs at Output at Standard Actual Costs Standard Prices Price AOxSP. SOx Direct Materials AHXAR T T Ann SR Sax Se 15,800 47 ., TD x cre | 1D xAHe ISR? x 4.00 16,00. S400 Labor (wee, 36¢ -}- —_, Variable Overhead CS Warance Ceara ce Feta Fixed Overhead ee iget Variance oe PATER 78. Given the following information in standard costing: Standard 16,000 hours at $4.00 Actual 15,800 hours at $4.20 What isthe total direc labor cost variance? A $5,100 faverabe. HL $9.160 uniavorabie, 6. $2,380 tavorale (15,800 » $46) - (15,000 » $4.20) = $3,160 unfavorable 4.20 ce AAosB: arate AIC#A FH Deowon Uae Blocns: Ares dicate Meco: _Leaming Otjoctve: 16.05 Compute and use arable cost ariances. Tope Area ower Lata (Lo 16-2) 16-20. Flexible Budept-. 8,000 units 10,000 units Activity ‘Actual Planned per month activity activity Required Given the data shown in the graph, determine the followir nc choropt = BLEED timid Geiivostpor pono = ——- a b. Budgeted variable cost perunit. = Shpe= Fan © Ax Value of F (that is, the flexible budget for an activity level of 8,000 units) Flexible budget cost amount if the actual activity had been 16,000 units yu a+ bx cK to,c00 + Fela (Beh) pe Fh oD ee 4qoee + FT /uct C1 c.. i d. 16-20. (20 min.) Flexible Budget. 2 sepo00 b. $8 perunit VC =(TC-FC)+x = ($120,000 — $40,000) + 10,000 units c. $104,000 TO =F +VK ‘= $40,000 + ($8 x 8,000 units) a. S166.000 TC =F +VK = $40,000 + (88 x 16,000 units) (LO 16-5) 16-28. Variable Cost Variances ‘The standard direct labor cost per unit for a compan) ur the period, actual direct labor costs amounted ro worked, an Required Compute the direct labor price and efficiency variances for the period. (Refer to Exhibit 16.9 for the format to use.) Exhibit 16.9 Dwect Labor Variances, August (60,000 Fremes)—Bayou Divsion *Stansanemane: (AP %AQ)— GP ®AO) (Gr xA0)— 15°30) Mn a eae) fs ae arse) Variance Analysis Template jandard Ouaniy Allowed for Actual Output, at Standard Price x Actual inputs at Standard Prices Ox SP. Actual Costs AOXAP. Direct Materials dt a iy Varance AGAR ARSE See 3200 , 628, ate) aber hes. BF 65D AAA SR Variable Overhead SS! jng variance Co Taraneo ~~ [ex suager Applied Fixed Overhead | iger Varance ——— Taran 16-28. (10 min.) Variable Cost Variances. shctual puts Flexible Budget Actual Price mews ertcsncy (Standard at Standard Inputs Allowed Costs Variance ae Variance inputs Allow Output) $28 x 3,200 $28 x05 x 5,600 ee = $69,600 = 878,400 Ly $1,400U $11,200 {LO 16-5, 6) 16-61. Comprehensive Variance Problem Sweetwater Company manufactures two products, Mountain Mist end Valley Stream. The company prepares its master budget on the basis of standard costs. The following data are for March: ‘Mourean 1st ‘Vator Sam Sounces atS1Sparcunen 4 ounces at $1650 pr ounce ‘urs at $60 per Nour ‘urs at $75 por nour ‘st 35250 Flex budget sss.st0 97200 8750 800 ‘8.100 ounces 2131350 per ounce 4.700 ounces at $1725 per ounce {900 haus a1 $60.75 per beur 7400 how ef $7B SO par oar 202580 $373,510 $1388 ‘996.000 1.600 us 1200 es Required a. Prepare a vatiance analysis for each variable cost for each product. b. Prepare a fived overhead variance analysis for each product like the one in Exhibit 16.13. Eiht 1613 FigdQveead Varah) Augst—Bajou Dvn rey Direct Materials Variance Analysis Template ib —b ] Allowed for Actul Output, at Stancare Price [—_Aaxsr | 1G. 3Se 315? x te Rel \ ee ty, 950 ; 46, seo 3 t¢ 5 om Direct Labor Variable are ASE 1600 SSE we <%60,95 ¥9s0 x Fhe 294, 200 er eee 7 nh? € Hee 4S < SME tye 05: gt EE ae x bo ¥ 242 550 deer ee: [sk#xse | Overhoad i es, Fawn hrs 1 e 235, 25D Foe nD —— — 7 h We hrs 335,340 roa |B eT eS x! ommal E3/5.4950 335,340 Cowen) Coie) $34, 400 eee, | jure Variance Siy7a papedxe 7 Sate e prohonsive Variance Problem: Sweetwater Company. ‘Actual Inpute Flexible Budget senate tant cmey eeutts St fe, SEE gee cee ea ea eons = ema seam eee ee ee seas Sie ae Sto nae aa stim sis smn same inet easeui soiree soteeco a sesaiee ~titlon anes aa =r wipara = sli fr tema ce unt "TS pte * variance agen sors seas stat ae am £25,000 hours allowed = 1,000 units produced 5 hours por uni 2 Variance Analysis Template ‘Actual Inputs at Standard Prices Direct Materials Variable Overhead = amy in1s Hyon tease #3) oF #47550 ‘a9, 51° zoo xe2 hws we _____y TS. ¢ 372, 50° - wee 9, 1sD ARSE ieee: SHEE = “eds Hes 7S Ber fe 7 tess ceo aaa 4540 wD fo Variance SE SO * ChE (oso 4 Fixed Overhead Flex Budget ‘ hes é Wid 7 200 Flexible Buagot pico ACMMINE eeconcy Grnenra inputs virine Simard inSeo Stoweaiorecoe ‘Suto (aes a0) is a0 srxsay £17:2544700 s1850%.4700 516504 ounces ‘one ee 4.200 ents Servs Toto resco sssesu | s18c07 Diet tor $76.50%7.400 7947. 300 s75x0 rows eae as 1.200 unis = s200.100 e250

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