COST ACCOUNTING 9TH EDITION

Chapter 17

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CHAPTER 17 EXERCISES
Exercise 1 Std Cost Per Unit Actual Qty Purchased Actual Puchase Price Actual Qty Used Std Qty

$13.50 4500 Pounds

$60,975 3900 Pounds 3800 Pounds $ 13.55 Actual Rate Material Purhase Price Variance Actual Qty Purchased @ actual Rate Actual Qty Purchased @ Std Rate Unfav Variance Price Usage Variance Actual Qty Used @ actual Rate

$60,975 $60,750 $225

Less:

$ 52,845 $ 52,650 $ 195

Less: Actual Qty Used @ Std Rate Unfav Variance Quantity Variance Actual Qty Usd @ Std Rate Less: Std Qty Used @ Std Rate Unfav Variance Exercise 2 Labor Rate Variance Actual Hrs @ Std Rate Act Hrs @ actual Rate Favorable Efficiency Variance Actual Hrs used @ std rate Std Hrs Used @ Std Rate Unfavorable Overall Labor Variance Actual Hrs @ Act Rate Std Hrs used @ std rate Unfav $ 6,435 $ 6,000 $ $ 6,500 $ 6,000 $ 500 $ 6,500 $ 6,435 $ 65 $51,300 $1,350 $ 52,650

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435 Exercise 3 Material Purhase Price Variance Actual Qty Purchased @ actual Rate Less: Actual Qty Purchased @ Std Rate fav Variance Price Usage Variance Actual Qty Used @ actual Rate Less: Actual Qty Used @ Std Rate fav Variance Quantity Variance Actual Qty Usd @ Std Rate Less: Std Qty Used @ Std Rate Unfav Variance Labor Rate Variance Actual Hrs @ Std Rate Act Hrs @ actual Rate unFavorable Labor Efficiency Variance Actual Hrs used @ std rate Std Hrs Used @ Std Rate favorable Exercise 4 Normal Capacity Std Rate Budgeted FIX FOH Variable Rate Actual Capacity Actual FOH Std Capacity Attained $ 3,720 $ 4,080 360 $ 3,720 $ 3,751 $ (31) $4,080 $1,320 $ 5,400 $ 5,400 270 $ 5,130 $6,000 $300

$5,700

12000 $12.50 $96,000 $4.50 12500 $166,000 11000

MHR Per MHR Per MHR MHR MHR

CONTROLBLE VARIANCE ACTUAL FOH Less: Budgeted@ std Fix FOH $96,000 Variable FOH Std cap*v.rate 11000*4.50 $49,500 Unfavaorable

$166,000

$145,500 $20,500

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VOLUME VARIANCE Normal Capacity Less: Std Capacity Capacity not utilized * FIX RATE UNFAVORABLE 12000 11000 1000 $8 $8,000 MHR MHR MHR

Reconciliation of Variances Actual FOH $166,000 Less:Std Cap*Std Rate $137,500 Unfav $28,500 20500+8000 EXERCISE 4 Normal Cap Std Rate Budgeted FIX Variable Rate Actual Cap Actual FOH Std Cap Attained $28,500

16000 $10.40 $64,000 $6.40 15000 $157,000 15300

DLH Per DLH PER DLH DLH DLH

Spending Variance Actual FOH Less: Budgeted FOH@ Act Cap FIX FOH $64,000 Variable $96,000 Fav Idle Capacity Variance Normal Cap Less: Actual Cap Excess of std overactual * Fix Rate Unfav Overall Variance Actual FOH Std cap * Std Rate 15300*10.4 Fav Exercise 17.10 Mix Variance Material A B C Total Pounds 20 5 25 50

$157,000

$160,000 $3,000

16000 15000 1000 $4 $4,000

DLH DLH DLH

$157,000 $159,120 $2,120

Std Cost 14 2 5

Amount 280 10 125 415

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Price of Input Price of Out put Input/Output ratio 415/50 415/40 40/50 8.3 10.375 4/5

Actual quantities at standard price Std Cost Material Pounds A 230000 14 B 50000 2 C 220000 5 Total 500000 Actual Quantity at weighted average price 500000*8.3 Mix Variance

Amount 3220000 100000 1100000 4420000

4150000 270000 unfaverable

Yield Varience Actual input quantity at weighted average of standard material cost= Actual output quantity at weignther average of standard material cost= 390000*10.375 or 390000*5/4*8.3 4046250 Exercise 17.11 1 Tone= 1 Tonne= 1 Kg= 1 Ton= Mix Variance Material Cocoa Milk Sugar Total Out Put Price of Input Price of Out put Input/Output ratio

4150000 4046250 103750 Unfaverable

1000 0.9842 2.2046 2170

kg Ton lbs lbs Std Cost 0.45 0.5 0.25 lbs 2335/5000 2335/2170 2170/5000 0.467 1.076037 217/500

Pounds 800 3700 500 5000 2170

Amount 360 1850 125 2335

Actual quantities at standard price Std Cost Material Pounds A 225000 0.45 B 1400000 0.5 C 250000 0.25 Total 1875000 Actual Quantity at weighted average price 1875000*.467

Amount 101250 700000 62500 863750

875625

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Mix Variance 11875 faverable Out Put 387*2170 839790 lbs Yield Varience Actual input quantity at weighted average of standard material cost= Actual output quantity at weignther average of standard material cost= 839790*1.076037

875625 903645 28020 Faverable

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