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Chapter 10 - Problems 10-43 and 46
Chapter 10 - Problems 10-43 and 46
1 no because as we can see variances were small and favorable 2 DIRECT DIRECT DIRECT DIRECT MATERIAL QTY MATERIAL PRICE LABOR RATE LABOR EFFICIENCY ACTUAL 22,500.00 15.40 16.00 20,900.00 -49,500.00 44,880.00 41,800.00 -53,200.00 -16,020.00
DIRECT MATERIAL PRICE VARIANCE DIRECT MATERIAL QTY VARIANCE DIRECT LABOR RATE VARIANCE DIRECT LABOR EFFICIENCY VARIANCE TOTAL VARIANCE
3 YES BECAUSE THOUGH IT RESULTS TO A FAVORABLE VARIANCE IT SEEMS THAT EACH VARIANCES ARE A LITTLE LARGE. 4 NO, BECAUSE AS WE CAN SEE IN THE ILLUSTRATION WITH REGARDS TO THE SUPPLIER THE COMPANY RESULTED TO UNFAVORABLE QTY VARIANCE WHICH MEANS THAT THE THEY BOUGHT THE MATERIALS AT A LOWER COST THAN STANDARD WHICH CAN IMPLY THAT IS IT AT POOR QUALITY AND ALSO THEY USED MATERIALS MORE THAN THE STANDARD
AND WITH REGARDS TO DIRECT LABOR THOUGH IT RESULTED TO FAVORABLE EFFICIENCY VARIA WHICH CAN IMPLY THAT THE TEAM BUILDING/ MORAL BOOSTING IS EFFECTIVE BECAUSE THE COMPANY INCURR LESS HOURS OF LABOR THAN THE STANDARD. THEY ARE PAYING THEM AT A HIGHER RATE THAN STANDARD 5 YES BECAUSE HE IS ONLY A PRODUCTION SUPERVISOR.
STANDARD 19,950.00 17.60 14.00 24,700.00 FAVORABLE UNFAVORABLE UNFAVORABLE FAVORABLE FAVORABLE
PURCHASED 22,500.00
THAT EACH
ACTUAL DIRECT DIRECT DIRECT DIRECT 1 2 3 4 DIRECT DIRECT DIRECT DIRECT MATERIAL QTY MATERIAL PRICE LABOR RATE LABOR EFFICIENCY MATERIAL PRICE VARIANCE MATERIAL QTY VARIANCE LABOR RATE VARIANCE LABOR EFFICIENCY VARIANCE 9,500.00 1.38 9.15 2,100.00 540.00 -675.00 525.00 890.00
PURCHASED 18,000.00
1 TYPE I ACTUAL DIRECT MATERIAL QTY DIRECT MATERIAL PRICE DIRECT MATERIAL PRICE VARIANCE DIRECT MATERIAL QTY VARIANCE TYPE II ACTUAL DIRECT MATERIAL QTY DIRECT MATERIAL PRICE DIRECT MATERIAL PRICE VARIANCE DIRECT MATERIAL QTY VARIANCE 3,900.00 0.80 -200.00 -420.00 1,850.00 1.08 200.00 -350.00
2 TYPE I ACTUAL DIRECT LABOR RATE DIRECT LABOR EFFICIENCY DIRECT LABOR RATE VARIANCE DIRECT LABOR EFFICIENCY VARIANCE 3 DIRECT MATERIAL TYPE I TYPE II DIRECT LABOR TOTAL ACTUAL COST REVENUE PROFIT * YES IT IS A SUCCESS 4 TYPE I DIRECT MATERIAL PRICE VARIANCE DIRECT MATERIAL QTY VARIANCE TYPE II DIRECT MATERIAL PRICE VARIANCE DIRECT MATERIAL QTY VARIANCE 200.00 -350.00 -200.00 -420.00 11.50 165.00 412.50 -495.00 1850 kgs * 1.08 per kg 3900 kgs * .80 per kg 165 hrs * 11.50 per hr 40 per app. X 6 app. X 55 clients
DIREC LABOR DIRECT LABOR RATE VARIANCE DIRECT LABOR EFFICIENCY VARIANCE
412.5 -495
TOTAL MATERIAL AND LABOR VARIANCE -852.50 * YES THE NEW SERVICE WAS SUCCESFULL TO HAVE A TOTAL FAVORABLE VARIANCE
PURCHASED 2,500.00
PURCHASED 5,000.00
STANDARD 9.00 220.00 UNFAVORABLE FAVORABLE 1,998.00 3,120.00 1,897.50 7,015.50 13,200.00 6,184.50
PATNI AUTO PARTS MFG. LTD. SCHEDULE OF STANDARD PRODUCTION COSTS FOR THE MONTH OF JANUARY DIRECT MATERIAL DIRECT LABOR TOTAL STANDARD COST 1.5kg x 5 per kg x 7800 units 5hr x 15 per hr x 7800 units ACTUAL DIRECT DIRECT DIRECT DIRECT DIRECT DIRECT DIRECT DIRECT MATERIAL QTY MATERIAL PRICE LABOR RATE LABOR EFFICIENCY MATERIAL PRICE VARIANCE MATERIAL QTY VARIANCE LABOR RATE VARIANCE LABOR EFFICIENCY VARIANCE ACTUAL DIRECT DIRECT DIRECT DIRECT DIRECT DIRECT DIRECT DIRECT MATERIAL QTY MATERIAL PRICE LABOR RATE LABOR EFFICIENCY MATERIAL PRICE VARIANCE MATERIAL QTY VARIANCE LABOR RATE VARIANCE LABOR EFFICIENCY VARIANCE 11,500.00 5.20 14.60 40,100.00 0.00 1,300.00 -56,140.00 41,600.00 11,500.00 5.20 14.60 40,100.00 2,500.00 1,250.00 -16,040.00 39,000.00 58,500.00 585,000.00 643,500.00 STANDARD 11,250.00 5.00 15.00 37,500.00 UNFAVORABLE UNFAVORABLE FAVORABLE UNFAVORABLE STANDARD 11,250.00 5.20 16.00 37,500.00 FAVORABLE UNFAVORABLE FAVORABLE UNFAVORABLE
PURCHASED 12,500.00
PURCHASED 12,500.00