EBK CORNERSTONES OF COST MANAGEMENT
3rd Edition
ISBN: 8220100474972
Author: MOWEN
Publisher: CENGAGE L
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Chapter 9, Problem 41P
1.
To determine
Compute the price and quantity variance for direct materials and direct labor in the month of May, 2015.
2.
To determine
Confer the trend of the direct materials and direct labor variances.
3.
To determine
Indicate the type of actions taken by the workers when they are observed for the setting of standards.
4.
To determine
Indicate the action taken by the company to confirm whether the standards are set correctly.
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Pacific Decor, Inc., designs, manufactures, and sells contemporary wood furniture. Ling Li is
a furniture designer for Pacific. Li has spent much of the past month working on the design
of a high-end dining room table. The design has been well-received by
Jose Alvarez, the product development manager. However, Alvarez wants to make sure that
the table can be priced competitively. Amy Hoover, Pacific's cost accountant, presents
Alvarez with the following cost data for the expected production of 200 tables:
Design cost
$ 5,000
Direct materials
120,000
Direct manufacturing labor
Variable manufacturing overhead
Fixed manufacturing overhead
142,000
64,000
46,500
Marketing
15,000
1. Alvarez thinks that Pacific can successfully market the table for $2,000. The
company's target operating income is 10% of revenue. Calculate the target full cost
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Chapter 9 Solutions
EBK CORNERSTONES OF COST MANAGEMENT
Ch. 9 - Discuss the difference between budgets and...Ch. 9 - What is the quantity decision? The pricing...Ch. 9 - Why is historical experience often a poor basis...Ch. 9 - Prob. 4DQCh. 9 - How does standard costing improve the control...Ch. 9 - The budget variance for variable production costs...Ch. 9 - Explain why the direct materials price variance is...Ch. 9 - The direct materials usage variance is always the...Ch. 9 - The direct labor rate variance is never...Ch. 9 - Prob. 10DQ
Ch. 9 - Prob. 11DQCh. 9 - What is the cause of an unfavorable volume...Ch. 9 - Prob. 13DQCh. 9 - Explain how the two-, three-, and four-variance...Ch. 9 - Prob. 15DQCh. 9 - Prob. 1CECh. 9 - Direct Materials Usage Variance Refer to...Ch. 9 - Refer to Cornerstone Exercise 9.1. Guillermos Oil...Ch. 9 - Kavallia Company set a standard cost for one item...Ch. 9 - Yohan Company has the following balances in its...Ch. 9 - Standish Company manufactures consumer products...Ch. 9 - Variances Refer to Cornerstone Exercise 9.6....Ch. 9 - Standish Company manufactures consumer products...Ch. 9 - Mangia Pizza Company makes frozen pizzas that are...Ch. 9 - Mangia Pizza Company makes frozen pizzas that are...Ch. 9 - Refer to Cornerstone Exercise 9.9. Required: 1....Ch. 9 - Quincy Farms is a producer of items made from farm...Ch. 9 - During the year, Dorner Company produced 280,000...Ch. 9 - Zoller Company produces a dark chocolate candy...Ch. 9 - Oerstman, Inc., uses a standard costing system and...Ch. 9 - Refer to the data in Exercise 9.15. Required: 1....Ch. 9 - Chypre, Inc., produces a cologne mist using a...Ch. 9 - Refer to Exercise 9.17. Chypre, Inc., purchased...Ch. 9 - Delano Company uses two types of direct labor for...Ch. 9 - Jameson Company produces paper towels. The company...Ch. 9 - Madison Company uses the following rule to...Ch. 9 - Laughlin, Inc., uses a standard costing system....Ch. 9 - Prob. 23ECh. 9 - Prob. 24ECh. 9 - A company uses a standard costing system. At the...Ch. 9 - Prob. 26ECh. 9 - Prob. 27ECh. 9 - Haversham Corporation produces dress shirts. The...Ch. 9 - Plimpton Company produces countertop ovens....Ch. 9 - Algers Company produces dry fertilizer. At the...Ch. 9 - Misterio Company uses a standard costing system....Ch. 9 - Petrillo Company produces engine parts for large...Ch. 9 - Business Specialty, Inc., manufactures two...Ch. 9 - Vet-Pro, Inc., produces a veterinary grade...Ch. 9 - Refer to the data in Problem 9.34. Vet-Pro, Inc.,...Ch. 9 - Energy Products Company produces a gasoline...Ch. 9 - Nuevo Company produces a single product. Nuevo...Ch. 9 - Ingles Company manufactures external hard drives....Ch. 9 - As part of its cost control program, Tracer...Ch. 9 - Aspen Medical Laboratory performs comprehensive...Ch. 9 - Prob. 41P
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