Acc 349

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Individual Assignment
Juliana Cardoso
ACC 349
April 17, 2012
Dr. Armando Salas- Amaro

Individual Assignment
Ch. 8

E8-11 Allied Company’s Small Motor Division manufactures a number of small motors used in household and office appliances. The Household Division of Allied then assembles and packages such items as blenders and juicers. Both divisions are free to buy and sell any of their components internally or externally. The following costs relate to small motor LN233 on a per unit basis.
Fixed cost per unit $ 5
Variable cost per unit 8
Selling price per unit 30

(a) Assuming that the Small Motor Division has excess capacity, compute the minimum acceptable price for the transfer of
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Using the numbers, indicate the formulas for each of the direct labor variances.

(1) – (3) = total labor variance; (1) – (2) = labor price variance; and (2) – (3) = labor quantity variance.

Ch. 11
E11-6 The following direct materials and direct labor data pertain to the operations of
Batista Manufacturing Company for the month of August.

Costs Quantities_____________
Actual labor rate $13 per hour Actual hours incurred and used 4,250 hours
Actual materials price $128 per ton Actual quantity of materials purchased and used 1,250 tons

Standard labor rate $12 per hour Standard hours used 4,300 hours

Standard materials price $130 per ton Standard quantity of materials used 1,200 tons

(a) Compute the total, price, and quantity variances for materials and labor.
(b) Provide two possible explanations for each of the unfavorable variances calculated above, and suggest where responsibility for the unfavorable result might be placed.

(a) Total materials variance: | ( AQ X AP ) (1,250 X $128)
$160,000 | | –– | ( SQ X SP )(1,200 X $130)
$156,000 | | = | $4000 U | Materials price variance: | ( AQ X
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