M Chapter 21- Interacti x C ezto.mheducation.com/hm.tpx bruno Baptista ACC 102 F
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M Chapter 21- Interacti x C ezto.mheducation.com/hm.tpx bruno Baptista ACC 102 Fiancial and Managerial Accounting, Wild, Shaw& Chiappetta 5th Edition 201802 AcC 102 OLT ACCOUNTING Chapter 21- Interactive Presentation Instructions help Question 7 (of 7) Save & Exit | Submit 1432 points 10 Slide 10 chapter 21: Flexible Budgets and Standard Costing entries for standard costs and account for nrice and auantitv variances Chapter 21 Problems x C | ezto.mheducation.com/hm.tpx?--0.421 261 6367412144-151 2509004787 The following Information opplies to the questions displayed below.] Trico Company sot tho following ctandard unit costs for its single produc:. Direct moterials (26 bsS5.00 per lb.) Direct labor (10 hrs. $10.00 per hr.) Factory overhesd-veriable (10 hrs $6.00 per hr.) Factory overhead-fred 10 hrs. $900 per h S 130.00 100.00 60.00 90.00 Total standerd cost 5 380.00 The predetermined overhead r te is based on plenned operating volume of 70% of the productive capacity 0170000 units per querter. The folowing flexible budget informetion is evailable Operating Levels 604% 42.000 420,000 709 49.000 490,000 80% Production in units Stendard direc: lebor hours Budgeted overhead 56,000 60,000 Fixed foctory overheed Variablo fectory overhead $ 4.410.000 $ 4.410.000 4.410.000 $2,520,000 $2.940,000 3.360,000 During the current quarter, the company operoted o! 80% of capocity and produced 56.000 units of product ectuel direct labor totaled 557000 hours. Units produced were assigned the following stenderd costs: Drect materials (1,456,000 los © 5 00 per lb.) Direct labor (560.000 hrs. $1000 per hr) Factory overheed (560,000 hrs$13 00 per hr) $ 7280,000 5,600.000 8400000 Totol stonderd cost S 21280000Explanation / Answer
Direct Materials A/c Dr 7,280,000
Direct Labour A/c Dr 5,600,000
Factory Overhead A/c Dr 8,400,000
To Accounts Payable A/c 7,280,000
To Wages Payable A/c 5,600,000
To Overhead Payable A/c 8,400,000
Labour Effiiciency Variance= Standard Rate Per Hour(Standard Hours-Actual Hours)
=$10/Hour( 5,60,000-5,57,000)
=$ 30,000 (F)
Wages Payable A/c Dr 30,000
To Labour Efficiency Variance A/c 30,0000
Standard Quantity for Materials is 26*56000 Units=14,56,000 and actual is same. So, there is no Material Quantity Variance and Standard Price of Materials and Actual Price of Materials is same. So, no Material Price Variance is there
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