Solutions to exercises

Exercise 10-28
Direct-material price variance = $2,400 Unfavorable
Direct-material quantity variance = $8,000 Unfavorable
Direct-labor rate variance = $3,900 Unfavorable
Direct-labor efficiency variance = $8,000 Unfavorable
Exercise 10-29
Direct material = $8,000 Unfavorable
Direct labor $11,900 Unfavorable
Exercise 10-31
Standard direct-material cost =$55.00
Exercise 10-32
Direct-material price variance = $1,800 Unfavorable
Direct-material quantity variance = $1,400 Unfavorable
Direct-labor rate = $645 Unfavorable
Direct-labor efficiency = $8,100 Unfavorable
Exercise 10-33
Direct-material price variance = $1,800 Unfavorable
Direct-material quantity variance = $1,400 Unfavorable
Direct-labor variance $8,745 Unfavorable
Exercise 10-34
The standard allowed input quantity in May was 4,800 pounds
Exercise 10-35
Standard price or rate per unit of input
Standard quantity per unit of output
Actual quantity used per unit of output
Direct-material quantity variance
Direct-labor rate variance
Exercise 10-36
1 Manufacturing cycle efficiency
2 Delivery cycle time is 22 days.

85%

Exercise 10-37
Aggregate (or total) productivity = 1.25
Problem 10-39

Direct Labor
$20 per hr
4 hrs per unit
$ 35,000 U

Direct Material
2.75 lbs per unit
3 lbs per unit
$20,000 U

Total standard production costs = $643,500

Direct-material price variance = $2,500 Unfavorable
Direct-material quantity variance = $750 Favorable
Direct-labor rate variance = $16,040 Favorable
Direct-labor efficiency variance = $16,500 Unfavorable
Problem 10-40
Standard material cost for each 10-liter container =46.68real
Problem 10-41
1 Direct-material price variance =$540 Unfavorable
2 Direct-material quantity variance = $675 Favorable
3 Direct-labor rate variance = $315 Unfavorable
4 Direct-labor efficiency variance = $900 Unfavorable
Problem 10-42
1

Type I fertilizer :Direct-material price variance=$ 150 Unfavorable

Direct-material quantity variance =$ 350 Favorable

Type II fertilizer
Direct-material price variance=$ 200 Favorable
Direct-material quantity variance =$ 420 Favorable
2

Direct-labor variances =$ 412.50 Unfavorable

Direct-labor efficiency variance =$ 495.00 Favorable

Total actual cost = $6,978.50

Yes, the service was a financial success

Total material and labor variances $902.50 Favorable

Problem 10-43
2 Total direct-material variance = $4,620F
Total direct-labor variance = $6,175F
Problem 10-44
1 a standard direct-labor hours =662
b Direct-labor efficiency variance = $4,343 F
2
a. Standard
Direct-Labor
Cost*
January..............................................................

$ 9,983

b. 20% of the
Standard DirectLabor Cost*
$1,997

February............................................................
March................................................................
April..................................................................
May...................................................................
June...................................................................
July....................................................................
August...............................................................
September.........................................................
October..............................................................

6,050
33,297
43,056
9,651
13,994
6,273
5,791
5,791
4,343

1,210
6,659
8,611
1,930
2,799
1,255
1,158
1,158
869

Problem 10-45
1
2
3
4

Direct-material price variance

= $24,000 Unfavorable
Direct-material quantity variance = $16,625 Favorable
Direct-labor rate variance
= $2,200 Favorable
Direct-labor efficiency variance =$2,000 Unfavorable

Problem 10-46
1 a Direct-labor rate variance for each labor class:Labor class
Rate
Direct-labor efficiency
variance

III

$600 U
$800 U

II

650 U
2,100U

300 U
1,250

Problem 10-47
1 Standard cost per cutting board =$8.62
Problem 10-48
1 Total standard cost per 10-gallon batch =$30.20
Problem 10-52
Charter Division
Semiannual installment = $ 3,520
First semiannual bonus awarded = $ 0
Mesa Division
Semiannual installment =$10,840
First semiannual bonus awarded =$10,840
Problem 10-53
1 a Direct-labor rate variance = $1,460 Unfavorable
B Direct-labor efficiency variance = $5,740 Favorable
C Actual quantity of material used =51,500 kilograms

D
E
F

Actual price paid per kilogram of direct material: = $4.985 per kilogram
Direct-material and direct-labor cost transferred to finished goods = $224,000, 275,520
Direct-material and direct-labor cost in November
30 balance of Work-in-Process Inventory:= $61,520

Problem 10-55
Standard cost :
Primary health check up= 200
Advanced health checkup =700
Operating cost statement for the month
Standard cost of actual number of each check ups : Rs. 1,07,000
Case 10-56
Standard Cost
22
23
24

$106,500
181,050
108,576

2 a Direct-material price variance=$ 1,900 U

Direct-material quantity variance
22 $110
23 $(396)
24 $27.50
Direct-labor efficiency variance
22 $ (294
23 $441
24 $147
Direct-labor rate variance
22 $ 894
23 $1,539
24 $ 867

Case 10-57
1 Actual output (in drums)= 1000 drums

2
A
Direct material
Standard quantity per drum...........................................
Standard price................................................................
Standard cost per drum..................................................
Standard quantity allowed, given actual output............
Actual quantity purchased.............................................
Actual price...................................................................
Actual quantity used......................................................
Price variance................................................................
Quantity variance..........................................................

A
10 lb.
$5.00/lb.
$50.00
10,000 lb.
12,000 lb.
$4.50/lb.
10,500 lb.
$6,000 F
$2,500 U

B
5 gal.
$3.00/gal.
$15.00
5,000 gal.
6,000 gal.
$3.20/gal
4,800 gal.
$1,200 U
$600 F

3
Direct labor:
a.
Standard hours per drum...............................................
b. Standard rate per hour...................................................
c.
Standard cost per drum..................................................
d. Standard quantity allowed, given actual output............
e.
Actual rate per hour.......................................................
f.
Actual hours..................................................................
g. Rate variance.................................................................
h. Efficiency variance........................................................
4 Total of all variances for the month: $1,510 F

I
(mixers)
2 hr.
$15.00
$30.00
2,000 hr
$15.30
2,000 hr
$600 U
-0-

II
(packers)
4 hr.
$12.00
$48.00
4,000 hr.
$11.90
4,100 hr.
$410 F
$1,200 U