sonan016 Assignment Results MBA 502 60 Online Managerial Accounting Fall 2016: MBA 502 60 Online Managerial “chapter 10 Denverebie x Accounting Fall 2016 Score: 1.25/5 points 25 % hipslacta mhedueation comin tp Brittany Cloud Intructions help 4ssonan016 Assignment Results 41, Award:128 out of5.00 points Showy answer ‘Sharp Company manufactures a product for which the following standards have been et: Standard Quarsty Standard Price Standard ‘or Hour orRate Cost Direct materale SBperfect — Si5 Direc bor Dperhour sing March, the company purchased direct malerals a a cost of $58,040, all of which were used in the production of 3,000 usaf rosvel. In addon, 600 hours of rect bor Lime wore worked on the product dung the month. The cost af th Inbar Lime was $34,500. The Talowing vacances have been Compute forthe month Materials quartty vatonce e200 Labor sponuing varance $3,900 Labor efctercy variance S 6a0u Required "For direct materiale 1. Compute the actual cost pe foot or mattis for March. (Round your answer to 2 decimal places) ‘Actual cost «19.68% [per foot . Compute the price vai Indieate the effect ofeach variance by salecting“F”for favorable, “U" fr unfavor "None" for no affect (8, zero variancs) Price vaiance Ss 14000% U Vv Spending variance '$ 17,940,000% U v 2. For iect bor 4. Compute the standara direct labor ate per hou (Do not round Intermediate calculations.) Standard direct labor rae par hour . Compute the standara hous allows fr the month's production, Standard hus howe ©. Compute the stands hous alle per unt of product. (Round your answer to 1 decimal place.) hipllacta mhodueation comin pxsonan016 Assignment Results Standard hours hours por unit )_2014_AC_S2471, 10_08_2014_ AC. 52471, 09_02_2015_QC_CS-21172, 11_04_2015_0C_CS- eBook & Resources ‘eBook: Compute the direc! labor rate and efficiency variances and explain their significance, ‘eBook: Compute the direc! matersale orice and quanily variances and explain heir significance Roferences Worksheot Learning Objective: 10-01 Compute the direct materials price and quantity variances and explain ther significance, Difficulty: 3 Hard Learning Objective: 10-02 Compute the direct labor rate and effeincy variances and explain tha significance, ‘Sharp Company manufactures a produc for which the following standards have been set StandaéQuantily Standard Price Standard of Hours Rate Cost Direct mates ‘feet sSperfet $15 Direct oboe 2 hours perhour During March the company purchased cect materials ata cost of $59,040, all of which were used in the production of 3,000 unis of product. In adon, 4,600 hours of direct labor time wer worked on the product during tho month. Tho cost of this labor tine was $34,500, Tho fllwing variances have boon Computed forthe month Materials quantity vance $4200 Laver spending variance $3,900 U Labor efcieney variance 53800 Require: “Wor dct mates ‘8. Compute the actu cost por foot for mata for March, (Round your answer to 2 decimal ices.) Actualcost ($6.00 [perfoot b. Comput the pice variance and the spending variance. (De not round intermediate calculations, Indicate the effet of each variance by selecting "for favorable, "U" for unfavorable, and "None" for no effect (Le, zero variance) hipllacta mhedueation comin tpsoran016 Assignment Results Pree variance S364 U Spending variance sou 2. For rect abor ‘2. Compute the standard direct labor rata per hour. (De not round intermediate calculations.) Standard det abor ate per hour $7 b. Compute the standard hous allowed forthe month's production Standard hours 4500 hows 6. Compute the standard hours allow per unit of product, (Round your answer to 1 decimal pace.) Standard hours 15 {ows por unit rev: 08192014 Q¢_52471 18_2014_AC._§2471, 08_02_2015_QC._CS- 11.94 20'8_ac_cs21172, Explanation: 1 Matorals quantity vaiance = SP (AQ - SQ) $5.00 por foot (AG ~ 9,000 fet) = $4,200 U 55,00 por fool » AG ~ $45,000 = $4,200" $8.00 par foot « AQ = $49,200, AQ= 8.840 fet £5,000 unit « 3 foot po uit “ten used wth the formula, unfavorable variances are positive and favorable varances are negative, ‘Therefor, $59,040 + 980 fet = 86.00 por foot ». Matoras price variance = AQ (AP - SP) ‘5,840 foo ($8.00 po oot ~ $5.00 per oot) = $5,840 U “The total varanoe for mateale Materials price variance $ se4ou Materials guantty variance 4200 Total variance hipllacta mhedueation comin tpsoran016 Assignment Results Altemative approach to pars (a ne () ‘Actual Quantity ‘Actua Quanity Standard Quanity of pat, at ‘of Input at lowed for Outpt, Actual Pree Standard Price at Standard Pros (AQ AP) (aa = SP) 3 820 et = 30 Tot = $5.00 pr fot” sta.200, Price Variance, $9,880 ‘Spenaing Variance, 14000 “even 5,000 units» 3 fot per unt = 9,000 fest 2 {ator rate variance = AH (AR~ SR) 4,800 hours ($7.50 por hour ~ SR} = $3,220 U" $54,500 = 4,500 notre » SR = $9,220)" ‘4,800 hours SR = $31,280 SR= $580 $34,500 + 4,600 hours 150,800) U+ S680) ‘*-iuhen used with the formula, unfavorable vatances are postive and favorable varances are negative » Labor sfloney vance = SR (AH - SH) ST per nour (800 hours ~ SH) = $680 U $51,280 ~ $7 per nour SH = S80)" 7 per hour = SH = §20 600 SH'= 4.500 hours “when used withthe formula, unfavorable variances ae positive and feverale varances are negative. _Atemative approach to pars (a) and ‘Actual Hours of ‘Actual Hours Stondara Hours Input ane of Inout, at Allowed for Output, ‘etal Rate the Standara Rate at the Standard Rate (AH AR tate SR (SH = SR) $5.80 pec hour 88.00 pes how 24.500" 2831-200, “= s30.600, Rate Variance, Eticioney Variance $3220 $680 0" ‘Spenaing Variance, 33.000 U" “ove, “The standard hours allowed per uni of product are: 4,500 nours + 3,000 ute = 5 hours punt. ‘2016 Meron HI Esexton Argh resoed hipllacta mhodueation comin px