-pcouiges)AB-219-OL01-18SPTD/A Exercise 8-2B Classifying variances as favorable

Question

-pcouiges)AB-219-OL01-18SPTD/A Exercise 8-2B Classifying variances as favorable or unfavorable (LO 8-2) Reguired been done as an example. each of the following variances is favorable (F) or unfavorable (U). The first one has Type of Variance item to Classify Standard Actual Sale volume Sales price Materials cost Materials usage Labor cost Labor usage Fixed cost spending Fixed cost per unit (volume) 40,000 units 38,918 units per 78 per unit $2.10 per pound $2.30 per pound 102,400 pounds 103,700 pounds $8.25 per hour 56,980 hours $249,000 $2.51 per unit $8.80 per hour 55,790 hours $244,000 $3.22 per unit Exercise 8-3B Recognizing favorable vs. unfavorable variances (LO 8-2) Compute vanances for the following tems and indicate whether each vanance is favorable (F) or unfavorable (U) BudgetActual Variance For U Item Sales price Sales revenue Cost of goods sold Material purchases at 10,000 pounds Materials usage Production volume Wages at 7,600 hours Labor usage Research and development expense Selling and administrative expenses $590 $690,000$720,000 $$20,000 $470.000 $330,000$360.000 $270,000 $260,000 $600 890 units 900 units $91.200 $90,800 8,000 $81,000 $90,000 $75.000$71,000 7.600

Explanation / Answer

Exercise 8-2B Classification of Variance Item to Classify Standard Actual Type of Variance Sales Volume 40000 Unit 38916 Unit Unfavourable Sales Price $6.90/Unit $6.78/Unit Favourable Material Cost $2.10 / Pound $2.30/Pound Unfavourable Material Usage 102400 Pounds 103700 Pounds Unfavourable Labour Cost $8.25/Hour $8.80/Hour Unfavourable Labour Usage 56980 Hour 55790 Hours Favourable Fixed Cost Spending $249,000 $244,000 Favourable Fixed Cost per Unit( Volume) $2.51/Unit $3.22/Unit Unfavourable Exercise 8-3B Recognization of Favourable/Unfavourable Variance Item Standard Actual Variance Type of Variance Sales Price $600 $590 $10 Favourable Cost of Goods Sold $690,000 $720,000 ($30,000) Unfavourable Material Purchase at 10000 Pound $520,000 $470,000 $50,000 Favourable Material Usage $270,000 $260,000 $10,000 Favourable Production Volume 890 Unit 900 Unit (10 Unit) Unfavourable Wages at 7600 Hours $91,200 $90,800 $400 Favourable Labour Usage                    7,600                    8,000 ($400) Unfavourable Research & Development Expense $81,000 $90,000 ($9,000) Unfavourable Selling & Administrative & Expense $75,000 $71,000 $4,000 Favourable Note: 2 Question Solved, As per Chegg Policy, only one question can be solved. If Solution provided is as per Your expection, Please mark positive Rating

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