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Concept explainers
a.
Compute the direct material price and efficiency variances.
a.
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Explanation of Solution
Compute the direct material price variances:
Compute the direct material efficiency variances:
Working note:
Actual cost (given) = $748,000.
Compute the actual inputs at standard price:
Compute the flexible budget (standard inputs allowed for good output):
b.
Compute the direct labor price and efficiency variances.
b.
![Check Mark](/static/check-mark.png)
Explanation of Solution
Compute the direct labor price variances:
Compute the direct labor efficiency variances:
Working note:
Actual cost (given) = $1,010,000.
Compute the actual inputs at standard price:
Compute the flexible budget (standard inputs allowed for good output):
c.
Compute the variable
c.
![Check Mark](/static/check-mark.png)
Explanation of Solution
Compute the variable overhead price variances:
Compute the variable overhead efficiency variances:
Working note:
Actual cost (given) = $930,000.
Compute the actual inputs at standard price:
Compute the flexible budget (standard inputs allowed for good output):
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Chapter 16 Solutions
Fundamentals of Cost Accounting
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