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Cultura Documentos
Chapter 24
Benchmarks for
measuring performance.
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Standard Cost Systems
A standard cost variance
is the amount by which
an actual cost differs from
the standard cost.
Standard cost
Amount
Direct
Material
Direct Manufacturing
Labor Overhead
Direct
Material
Direct Manufacturing
Labor Overhead
24-5
Direct Labor Standards
Rate Time
Standards Standards
24-6
Manufacturing Overhead
Standards
Rate Activity
Standards Standards
24-7
A General Model for
Variance Analysis
Actual Quantity Actual Quantity Standard Quantity
× × ×
Actual Price Standard Price Standard Price
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A General Model for
Variance Analysis
Actual Quantity Actual Quantity Standard Quantity
× × ×
Actual Price Standard Price Standard Price
24-9
Manufacturing Overhead
Variances
Budgeted Applied
Actual Overhead at Overhead at
Overhead Actual Activity Standard Hours
Spending Volume
Variance
Variance
Shows how economically overhead Caused by producing at
Services were purchased and how a level other than that
efficiently overhead services were used for computing the
used. Contains both fixed and standard overhead rate.
variable costs. Contains only fixed
A controllable variance. costs.
24-10
Manufacturing Overhead Zippy
Variances Example
Budgeted Applied
Actual Overhead at Overhead at
Overhead Actual Activity Standard Hours
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Disposing of Variances
Standard Cost Variances
Close to Close by
Cost of Goods Sold apportioning to:
Work in Process
Finished Goods
Cost of Goods Sold
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Summary of Variance
Computations and Manager
Responsibilities
Variance Computation Manager Responsible
Materials
Price variance AQ × (SP – AP) Purchasing agent
Quantity variance SP × (SQ – AQ) Production manager
Labor
Rate Variance AH × (SR – AR) Production manager
Efficiency variance SR × (SH – AH) Production manager
Overhead
Spending variance Budgeted OH at Actual Production Production manager for
Level – Actual OH the controllable costs.
24-13
Ethics, Fraud, and
Corporate Governance
For a company using standard costing systems,
the accuracy of the inventory and cost of goods
sold figures reported in the company’s financial
statements is dependent on the reliability of the
standard cost numbers.
24-14
End of Chapter 24
24-15