2. Acme Inc. has the following information available: Actual price paid for material Standard price for material Actual quantity purchased and used in production Standard quantity for units produced Actual labor rate per hour Standard labor rate per hour Actual hours Standard hours for units produced $1.00 $0.90 A. B. C. D. E. unfavorable variances. Compute the material price and quantity, and the labor rate and efficiency variances. Describe the possible causes for this combination of favorable and 100 90 15 $ $ 16 200 220
2. Acme Inc. has the following information available: Actual price paid for material Standard price for material Actual quantity purchased and used in production Standard quantity for units produced Actual labor rate per hour Standard labor rate per hour Actual hours Standard hours for units produced $1.00 $0.90 A. B. C. D. E. unfavorable variances. Compute the material price and quantity, and the labor rate and efficiency variances. Describe the possible causes for this combination of favorable and 100 90 15 $ $ 16 200 220
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 12EA: Acme Inc. has the following information available: A. Compute the material price and quantity, and...
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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