Compute the price and efficiency variances of direct materials and direct manufacturing
Compute the price and efficiency variances of direct materials and direct manufacturing
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
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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Question
![p r:-1 %V9 |.
Arabic
English
homework- m...
Question 1: You have been invited to interview for an internship with an international food
manufacturing company. When you arrive for the interview, you are given the following
information related to a fictitious Belgian chocolatier for the month of June. The chocolatier
manufactures truffles in 12-piece boxes. The production is labor intensive, and the delicate
nature of the chocolate requires a high degree of skill.
Actual
Boxes produced
10,000
2,150,000 g
60,200 euro
Direct materials used in production
Actual direct material cost
Actual direct manufacturing labor-hours
Actual direct manufacturing labor cost
1,100
12,650 euro
Standards
Purchase price of direct materials
Materials per box
Wage rate
Boxes per hour
0.03 euro/g
200 g
12 euro/hour
10
Required : Compute the price and efficiency variances of direct materials and direct manufacturing
Question 2: Eric Williams is a cost accountant and husiness analy
DDC), which manufactures expensive briss dootknobs. DD
aterials and direct manufacturing labor. Williams feels that
material usage. Therefore. DDC allocates manufacnming
aterials used Atthie beginning of 2017, DDC b
معدل الأجور
الصناديق في الساعة
10
مطلوب: حساب التباين في السعر والكفاءة ل لمواد
orkn
المباشرة والتصنيع المباشر
المخاض.
السؤال 2: إيريك ولیامز محاسب تكاليف ومحل ل أعمال
الشركة تصميم الماس
تعديل
التباین](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F38718868-2f48-4533-9e05-fd294ed4acc1%2F78fcd51c-0ee1-4fb0-b611-8cdaee504f9e%2Fftwr2nr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:p r:-1 %V9 |.
Arabic
English
homework- m...
Question 1: You have been invited to interview for an internship with an international food
manufacturing company. When you arrive for the interview, you are given the following
information related to a fictitious Belgian chocolatier for the month of June. The chocolatier
manufactures truffles in 12-piece boxes. The production is labor intensive, and the delicate
nature of the chocolate requires a high degree of skill.
Actual
Boxes produced
10,000
2,150,000 g
60,200 euro
Direct materials used in production
Actual direct material cost
Actual direct manufacturing labor-hours
Actual direct manufacturing labor cost
1,100
12,650 euro
Standards
Purchase price of direct materials
Materials per box
Wage rate
Boxes per hour
0.03 euro/g
200 g
12 euro/hour
10
Required : Compute the price and efficiency variances of direct materials and direct manufacturing
Question 2: Eric Williams is a cost accountant and husiness analy
DDC), which manufactures expensive briss dootknobs. DD
aterials and direct manufacturing labor. Williams feels that
material usage. Therefore. DDC allocates manufacnming
aterials used Atthie beginning of 2017, DDC b
معدل الأجور
الصناديق في الساعة
10
مطلوب: حساب التباين في السعر والكفاءة ل لمواد
orkn
المباشرة والتصنيع المباشر
المخاض.
السؤال 2: إيريك ولیامز محاسب تكاليف ومحل ل أعمال
الشركة تصميم الماس
تعديل
التباین
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