Cost Management
Cost Management
8th Edition
ISBN: 9781259917028
Author: BLOCHER, Edward
Publisher: Mcgraw-hill Education,
Question
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Chapter 15, Problem 28E

1.

To determine

Calculate the flexible budget amount for equipment depreciation in September.

2.

To determine

Calculate the spending variance for the depreciation on equipment.

3.

To determine

Calculate the fixed overhead production volume variance for depreciation expenses and show the interpretation of the variance.

4.

To determine

Point out the reasons for the observed spending variance.

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The standard labor cost in the production of a pair of Thunder Brand running shoes is 0.60 hours at $18 per hour. During the month of July, 32,000 pairs were produced. Actual labor costs were $182,000 for 10,250 hours. Compute the labor rate variance and labor efficiency variance for the month of July.
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