MANAGERIAL ACCOUNTING (LL) W/ACCESS
16th Edition
ISBN: 9781264028214
Author: Garrison
Publisher: MCG
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Chapter 10.A, Problem 2E
EXERCISE 10A-2 Predetermined
Xonval Company's budgeted variable
- At a denominator activity' of 60:000 machine-hours, the company should produce 40,000 units of product.
- The company's actual operating results were:
Required:
- Compute the predetermined overhead rate and break it down into variable and fixed cost elements.
- Compute the standard hours allowed for the actual production.
- Compute the variable overhead rate and efficiency variances and the fixed overhead budget and volume variances.
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Problem-12.15
The standard and actual cost data of RIZWAN LTD. are as follows::
Standard
70,000 units @ Rs. 28
35,000 hrs @ Rs. 42
Actual
68,600units @ Rs. 24.50
42,000 hrs @ Rs. 45.50
Rs. 94,500
Direct Material
Direct Labour
Factory Overhead
50% of direct labour
Required:
a) Calculate
Material price variance and material quantity variance
Labour rate Variance and labour time variance
ii)
iii) Overhead variance
b) General journal entries to record the above information and to close the variance accounts.
Question Content Area
The following data relate to direct labor costs for the current period:
Line Item Description
Value
Standard costs
7,000 hours at $11.80
Actual costs
6,300 hours at $10.80
The direct labor rate variance is
a. $14,560 unfavorable
b. $6,300 favorable
c. $14,560 favorable
d. $8,260 favorable
Problem 2.
Each of the following independent situations relates to direct labor. Fill in the blanks.
A
в
C
Units produced
4,000
1,900
3,000
Actual hours worked
Standard hours for
8,400
2,000
6,000
production achieved
Standard hours per unit
Standard rate per hour
Actual labor cost
0.5
P10
3
P12
P12
P83,600
P24,500
Rate variance
P310U
P900U
P300F
Efficiency variance
P2,000U
P1,800F
P800 U
Chapter 10 Solutions
MANAGERIAL ACCOUNTING (LL) W/ACCESS
Ch. 10.A - EXERCISE 10A-1 Fixed Overhead Variances LO10-4...Ch. 10.A - EXERCISE 10A-2 Predetermined Overhead Rate;...Ch. 10.A - Prob. 3ECh. 10.A - EXERCISE 10A-4 Fixed Overhead Variances LO10-4...Ch. 10.A - EXERCISE 10A5 Using Fixed Overhead Variances LO104...Ch. 10.A - EXERCISE 10A-6 Predetermined Overhead Rate LO10-4...Ch. 10.A - EXERCISE 10A-7 Relations Among Fixed Overhead...Ch. 10.A - Prob. 8PCh. 10.A - PROBLEM 10A-9 Applying Overhead; Overhead...Ch. 10.A - PROBLEM 10A-10 Comprehensive Standard Cost...
Ch. 10.A -
PROBLEM 10A-11 Comprehensive Standard Cost...Ch. 10.A - Prob. 12PCh. 10.B - EXERCISE 10B-1 Standard Cost Flows; Income...Ch. 10.B - Prob. 2ECh. 10.B - Prob. 3ECh. 10.B - Prob. 4ECh. 10.B - Prob. 5PCh. 10.B - Prob. 6PCh. 10 - Prob. 1QCh. 10 - Why are separate price and quantity variances...Ch. 10 - 10-3 Who is generally responsible for the...Ch. 10 - The materials price variance can be computed at...Ch. 10 - 10-5 If the materials price variance is favorable...Ch. 10 - Prob. 6QCh. 10 - Prob. 7QCh. 10 - 10-8 What effect, if any, would you expect...Ch. 10 - 10-9 If variable manufacturing overhead is applied...Ch. 10 - 10-10 Why can undue emphasis on labor efficiency...Ch. 10 -
The Excel worksheet form that appears below is to...Ch. 10 - Prob. 2AECh. 10 - Prob. 1F15Ch. 10 - Prob. 2F15Ch. 10 - Prob. 3F15Ch. 10 - Prob. 4F15Ch. 10 - Prob. 5F15Ch. 10 - Prob. 6F15Ch. 10 - Prob. 7F15Ch. 10 - Prob. 8F15Ch. 10 - Prob. 9F15Ch. 10 - Preble Company manufactures one product. Its...Ch. 10 - Prob. 11F15Ch. 10 - Prob. 12F15Ch. 10 - Prob. 13F15Ch. 10 - Prob. 14F15Ch. 10 - Prob. 15F15Ch. 10 - EXERCISE 10-1 Direct Materials Variances LO10-1...Ch. 10 -
EXERCISE 10-2 Direct Labor Variances...Ch. 10 -
EXERCISE 10–3 Variable Overhead Variances...Ch. 10 - EXERCISE 10-4 Direct Labor and Variable...Ch. 10 -
EXERCISE 10-5 Working Backwards from Labor...Ch. 10 - EXERCISE 10-6 Direct Materials and Direct Labor...Ch. 10 - EXERCISE 10-7 Direct Materials Variances LOIO-1...Ch. 10 -
EXERCISE 10-8 Direct Materials and Direct Labor...Ch. 10 -
PROBLEM 10-9 Comprehensive Variance Analysis...Ch. 10 -
PROBLEM 10-10 Multiple Products, Materials, and...Ch. 10 - PROBLEM 10-11 Direct Materials and Direct Labor...Ch. 10 - PROBLEM 10-12 Variance Analysis in a...Ch. 10 - Prob. 13PCh. 10 - Prob. 14PCh. 10 - PROBLEM 10-15 Comprehensive Variance Analysis...Ch. 10 - Prob. 16PCh. 10 - Prob. 17C
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