1
Prepare standard cost card for each product with direct material and direct labor.
Introduction:
1
Answer to Problem 10.10P
Standard cost of A6 is $28.42 and Z7 is $41.01
Explanation of Solution
Standard cost of A6
Standard cost of Z7
2
Compute material price variance and material quantity variance.
Introduction: Standard costing means the accounting system which is used by manufacturers mainly to identify variances or difference that occur in cost. The difference is identified between actual cost of goods that were manufactured and those cost which should have occurred when actual goods were manufactured.
2
Answer to Problem 10.10P
The material price variance of X442 is $1,450 and Y661 is $775 and material quantity variance X442 is $700 and Y661 is $1,400.
Explanation of Solution
Material price variance of X442
Material price variance of Y661
Material quantity variance X442
Material quantity variance Y661
3
Compute labor rate variance and labor efficiency variance.
Introduction: Standard costing means the accounting system which is used by manufacturers mainly to identify variances or difference that occur in cost. The difference is identified between actual cost of goods that were manufactured and those cost which should have occurred when actual goods were manufactured.
3
Answer to Problem 10.10P
The labor rate variance of sintering is $3,240 and finishing is $5,130 and labor efficiency variance of sintering is $3,960 and finishing is $3,960.
Explanation of Solution
Labor rate variance for sintering
Labor efficiency variance for sintering
Labor rate variance for Finishing
Labor efficiency variance for Finishing
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Chapter 10 Solutions
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