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 Instructions (a) Assuming that the Small Motor Division has excess capacity, compute the minimum acceptable price for the transfer of…show more content…
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 Instructions (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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