Вы находитесь на странице: 1из 13

Chapter 12

Standard Costs and Variances

EXERCISE 12-1

1. Number of helmets ................................................................... 35,000


Standard kilograms of plastic per helmet .................................. × 0.6
Total standard kilograms allowed.............................................. 21,000
Standard cost per kilogram ....................................................... × $8
Total standard cost ................................................................... $168,000

Actual cost incurred (given) ...................................................... $171,000


Total standard cost (above) ...................................................... 168,000
Total material variance—unfavorable ....................................... $3,000

2.
Standard Quantity Allowed
Actual Quantity of Input, Actual Quality of Input, for Actual Output,
at Actual Price at Standard Price at Standard Price
(AQ × AP) (AQ × SP) (SQ × SP)
22,500 kilograms × 22,500 kilograms × 21,500 kilograms ×
$7.6 per kiligrams $8 per kiligrams $8 per kiligrams
= $171,000 = 180,000 = $168,000

Price variance Quantity variance


= $9,000 F = $12,000 U
Spending variance = $3,000 U

Alternatively, the variances can be computed using the formulas:


Price variance = AQ (AP – SP)
= 22,500 kilograms ($7.0 per kilograms – $8 per kilograms)
= $9,000 F
Quantity variance = SP (AQ – SQ)
= $8 per kilograms (22,500 kilograms – 21,500 kilograms)
= $12,000 U
EXERCISE 12-2

1.
Number of meals prepared ........................................ 4,000
Standard direct labor-hours per meal ......................... x 0.25
Total direct labor-hours allowed ................................. 1,000
Standard direct labor cost per hour ............................ x 9.75
Total standard direct labor cost .................................. $9,750

Actual cost incurred ................................................... $9,600


Total standard direct labor cost (above) ..................... 9,750
Spending variance ..................................................... $150 F

2.
Standard Hours Allowed
Actual Hours of Input, Actual Hours of Input, for Actual Output,
at Actual Rate at Standard Rate at Standard Rate
(AH × AR) (AH × SR) (SH × SR)
960 hours × 960 hours × 1,000 hours ×
$10.00 per hour $9.75 per hour $9.75 per hour
= $9,600 = $9,360 = $9,750

Labor rate variance Labor efficiency variance


= $240 U = $390 F
Spending variance = $150 F

Alternatively, the variances can be computed using the formulas:


Labor rate variance = AH (AR – SR)
= 960 hours ($10.00 per hour – $9.75 per hour)
= $240 U
Labor efficiency variance = SR (AH – SH)
= $9.75 per hour (960 hours – 1,000 hours)
= $390 F
EXERCISE 12-3

1. Number of items shipped ....................................................... 120,000


Standard direct labor-hours per item ...................................... x 0.02
Total direct labor-hours allowed ............................................. 2,400
Standard variable overhead cost per hour ............................. x $3.25
Total standard variable overhead cost ................................... $7,800

Actual variable overhead cost incurred .................................. $7,360


Total standard variable overhead cost (above) ...................... 7,800
Spending variance ................................................................. $440 F

2.
Standard Hours Allowed
Actual Hours of Input, Actual Hours of Input, for Actual Output,
at Actual Rate at Standard Rate at Standard Rate
(AH × AR) (AH × SR) (SH × SR)
2,300 hours × 2,300 hours × 2,400 hours ×
$3.2 per hour $3.25 per hour $3.25 per hour
= $7,360 = $7,475 = $7,800

Variable overhead Variable overhead


rate variance efficiency variance
= $115 F = $325F
Spending variance = $440 F

Alternatively, the variances can be computed using the formulas:


Variable overhead rate variance = AH (AR – SR)
= 2,300 hours ($3.2 per hour – $3.25 per hour)
= $115 F
Variable overhead efficiency variance = SR (AH – SH)
= $3.25 per hour (2,300 hours – 2,400 hours)
= $325 F
PROBLEM 12-10

1. a. Direct Material and Price and Quantity Variances

Actual Quantity Actual Quantity Standard Quantity Allowed for


of Input, of Input, Actual Output,
at Actual Price at Standard Price at Standard Price
(AQ × AP) (AQ × SP) (SQ × SP)
60,000 pounds × 60,000 pounds × 45,000 pounds ×
$1.95 per pound $2 per pound $2 per pound
= $117,000 = $120,000 = $90,000

Materials price variance


= $3,000 F

49,200 pounds ×
$2 per pound
= $98,400

Materials quantity variance =


$8,400 U

Alternatively, the variances can be computed using the formulas:


Materials price variance = AQ (AP – SP)
= 60,000 pounds ($1.95 per pound – $2 per pound)
= $3,000 F
Materials quantity variance = SP (AQ – SQ)
= $2 per pound (49,200 pounds – 45,000 pounds)
= $8,400 U
1. b. Direct Labor Rate and Efficiency Variances
Standard Hours Allowed
Actual Hours of Input, Actual Hours of Input, for Actual Output,
at Actual Rate at Standard Rate at Standard Rate
(AH × AR) (AH × SR) (SH × SR)
11,800 hours × 11,800 hours × 12,000 hours ×
$7 per hour $6 per hour $6.00 per hour
= $82,600 = $70,800 = $72,000

Labor rate variance Labor efficiency variance


= $11,800 U = $1,200 F
Spending variance = $10,600 U

Alternatively, the variances can be computed using the formulas:

Labor rate variance = AH (AR – SR)


= 11,800 hours ($7 per hour – $6 per hour)
= $11,800 U
Labor efficiency variance = SR (AH – SH)
= $6 per hour (11,800 hours – 12,000 hours)
= $1,200 F

1. c. Variable Overhead Rate and Efficiency Variances


Standard Hours Allowed
Actual Hours of Input, Actual Hours of Input, for Actual Output,
at Actual Rate at Standard Rate at Standard Rate
(AH × AR) (AH × SR) (SH × SR)
5,900 hours × 5,900 hours × 6,000 hours ×
$3.1 per hour $3 per hour $3 per hour
= $18,290 = $17,700 = $18,000

Variable overhead Variable overhead


rate variance efficiency variance
= $590 U = $300 F
Spending variance = $290 U

Alternatively, the variances can be computed using the formulas:


Variable overhead rate variance = AH (AR – SR)
= 5,900 hours ($3.1 per hour* – $3 per hour)
= $590 U
Variable overhead efficiency variance = SR (AH – SH)
= $3.00 per hour (5,900 hours – 6,000 hours)
= $300 F

2. Summary of variances:

Material price variance ............................................ $3,000 F


Material quantity variance ........................................ 8,400 U
Labor rate variance.................................................. 11,800 U
Labor efficiency variance ......................................... 1,200 F
Variable overhead rate variance .............................. 590 U
Variable overhead efficiency variance ...................... 300 F
Net variance ............................................................ $16,290 U

The net unfavorable variance of $16,290 for the month caused the plant’s variable cost of
goods sold to increase from the budgeted level of $180,000 to $196,290:

Budgeted cost of goods sold at $12 per pool ............................... $180,000


Add the net unfavorable variance, as above ................................ 16,290
Actual cost of goods sold ............................................................. $196,290

This $16,290 net unfavorable variance also accounts for the difference between the
budgeted net operating income and the actual net operating income for the month.

Budgeted net operating income ................................................... $36,000


Deduct the net unfavorable variance added to cost of goods sold
for the month ............................................................................ 16,290
Net operating income .................................................................. $19,710

3. The two most significant variances are the materials quantity variance and the labor
efficiency variance. Possible causes of the variances include:

Materials price variance: Outdated standards, uneconomical quantity purchased, higher


quality materials, high-cost method of transport.

Labor efficiency variance: Poorly trained workers, poor quality materials, faulty
equipment, work interruptions, inaccurate standards,
insufficient demand.
PROBLEM 12-11

1. The standard quantity of plates allowed for tests performed during the month would be:

Blood tests .......................................... 1,800


Smears ................................................ 2,400
Total .................................................... 4,200
Plates per test ..................................... × 2
Standard quantity allowed ................... 8,400

The variance analysis for plates would be:

Actual Quantity Actual Quantity Standard Quantity Allowed for


of Input, of Input, Actual Output,
at Actual Price at Standard Price at Standard Price
(AQ × AP) (AQ × SP) (SQ × SP)
12,000 plates x 12,000 plates × 8,400 plates ×
$2.35 per plate $2.50 per plate $2.50 per plate
= $28,200 = $30,000 = $21,000

Materials price variance


= $1,800 F

(12,000 – 1,500) plates ×


$2.50 per plate
= $26,250

Materials quantity variance =


$5,250 U

Alternatively, the variances can be computed using the formulas:


Materials price variance = AQ (AP – SP)
= 12,000 plates ($2.35 per plate – $2.50 per plate)
= $1,800 F
Materials quantity variance = SP (AQ – SQ)
= $2.50 per plate (10,500 plates – 8,400 plates)
= $5,250 U
2. a. The standard hours allowed for tests performed during the month would be:

Smears: 0.15 hour per test × 2,400 tests ....................... 360


Blood tests: 0.3 hour per test×1,800 tests...................... 540
Total standard hours allowed ......................................... 900

The variance analysis of labor would be:


Standard Hours Allowed
Actual Hours of Input, Actual Hours of Input, for Actual Output,
at Actual Rate at Standard Rate at Standard Rate
(AH × AR) (AH × SR) (SH × SR)
1,150 hours x 1,150 hours × 900 hours ×
$12 per hour $14 per hour $14 per hour
= $13,800 = $16,100 = $12,600

Labor rate variance Labor efficiency variance


= $13,800 - $ 16,100 = $16,100 - $12,600
= 2,300 F = $3,500 U
Spending variance = -$2,300 + $3,500 = $1,200 U

Alternatively, the variances can be computed using the formulas:


Labor rate variance = AH (AR – SR)
= 1,1150 hours ($12 per hour – $14.00 per hour)
= $2,300 F
Labor efficiency variance = SR (AH – SH)
= $14 per hour (1,150 hours – 900 hours)
= $3,500 U

2. b. The policy probably should not be continued. Although the hospital is saving $2 per hour
by employing more assistants relative to the number of senior technicians than other
hospitals, this savings is more than offset by other factors. Too much time is being taken
in performing lab tests, as indicated by the large unfavorable labor efficiency variance.
And, it seems likely that most (or all) of the hospital’s unfavorable quantity variance for
plates is traceable to inadequate supervision of assistants in the lab.
3. The variable overhead variances follow:
Standard Hours Allowed
Actual Hours of Input, Actual Hours of Input, for Actual Output,
at Actual Rate at Standard Rate at Standard Rate
(AH × AR) (AH × SR) (SH × SR)
1,150 hours x 1,150 hours × 900 hours* ×
$6.8 per hour $6 per hour $6 per hour
= $7,820 = $6,900 = $5,400

Variable overhead Variable overhead


rate variance efficiency variance
= $920 U = $1,500 U
Spending variance = $2,420 U

* (0.3 hours per test x 1,800 blood test) + (0.15 hours per test x 2,400 smears test) = 900 hours

Alternatively, the variances can be computed using the formulas:


Variable overhead rate variance = AH (AR – SR)
= 1,150 hours ($6.8 per hour – $6 per hour)
= $920 U
Variable overhead efficiency variance = SR (AH – SH)
= $6 per hour (1,150 hours – 900 hours)
= $1,500 U

Yes, there is a relation between the variable overhead efficiency variance and the labor efficiency
variance. Both are computed by comparing actual labor time to the standard hours allowed for
the output of the period. Thus, if there is an unfavorable labor efficiency variance, there will also
be an unfavorable variable overhead efficiency variance.
PROBLEM 12-14

1. Standard cost allowed:


Materials used $16,800
Direct labor ....................................................................................................... 10,500
Variable manufacturing overhead ..................................................................... 4,200
Standard cost used during March ........................................................................ $31,500
Standard cost of a single backpack ($31,500 ÷ 1,000) = $31.50

2. Actual cost incurred:


Materials used $15,000
Direct labor........................................................................................................ 12,750*
Variable manufacturing overhead...................................................................... 3,600
Standard cost used during March ........................................................................ $31,350
Standard cost of a single backpack ($31,350 ÷ 1,000) = $31.35
* look at part 6

3. Standard cost of materials used during March (a) ................................................ $16,800


Number of units produced (b)............................................................................... 1,000
Standard materials cost per kit (a) ÷ (b) ............................................................... $16.80
𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑚𝑎𝑡𝑒𝑟𝑖𝑎𝑙𝑠 𝑐𝑜𝑠𝑡 𝑝𝑒𝑟 𝑘𝑖𝑡 $16.80 𝑝𝑒𝑟 𝑘𝑖𝑡
= = 2.80 𝑦𝑎𝑟𝑑𝑠 𝑝𝑒𝑟 𝑘𝑖𝑡
𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑚𝑎𝑡𝑒𝑟𝑖𝑎𝑙𝑠 𝑐𝑜𝑠𝑡 𝑝𝑒𝑟 𝑦𝑎𝑟𝑑 $6 𝑝𝑒𝑟 𝑦𝑎𝑟𝑑

4. Since there was no beginning or ending inventories of materials, all of the materials that were
purchased during the period were used in production. Therefore, the sum of the price and
quantity variances equals the spending variance, which is the difference between the actual
cost and standard cost of materials used in production.

Actual cost of material used .............................. $15,000


Standard cost of material used .......................... 16,800
Spending variance............................................. $ 1,800 F

In this case the price and quantity variances together equal the spending variance. If the quantity
variance is $1,200 U, then the price variance must be:
Price Variance + Quantity Variance = Spending Variance
Price Variance + $1,200 = $1,800 F
Price Variance = -1,800 – 1,200 = $3,000 F
Alternatively, can be calculated like this:
Price variance

Materials price variance .................................... $3,000 F


Materials quantity variance ................................ 1,200 U
Spending variance ............................................ $1,800 F

5. The first step in computing the standard direct labor rate is to determine the standard direct
labor-hours allowed for the month’s production. The standard direct labor-hours can be
computed by working with the variable manufacturing overhead cost figures because they are
based on direct labor-hours worked:

Standard manufacturing variable overhead cost for


March (a) ............................................................................................. $4,200
Standard manufacturing variable overhead rate per
direct labor-hour (b).............................................................................. $3
Standard direct labor-hours for the month (a) ÷ (b) .................................. 1,400

𝑇𝑜𝑡𝑎𝑙 𝑠𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑙𝑎𝑏𝑜𝑟 𝑐𝑜𝑠𝑡 𝑓𝑜𝑟 𝑡ℎ𝑒 𝑚𝑜𝑛𝑡ℎ $10,500


= = $7.5 𝑝𝑒𝑟 𝐷𝐿𝐻
𝑇𝑜𝑡𝑎𝑙 𝑠𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑑𝑖𝑟𝑒𝑐𝑡 𝑙𝑎𝑏𝑜𝑟 ℎ𝑜𝑢𝑟𝑠 𝑓𝑜𝑟 𝑡ℎ𝑒 𝑚𝑜𝑛𝑡ℎ 1,400

6. Before the labor variances can be computed, the actual direct labor cost for the month must
be computed:

Actual cost per kit produced ($31.5 – $0.15)................................ $ 31.35


Number of kits produced.............................................................. × 1,000
Total actual cost of production ..................................................... $31,350
Less: Actual cost of materials ...................................................... $15,000
Actual cost of manufacturing variable overhead ................. 3,600 18,600
Actual cost of direct labor ............................................................ $ 12,750
With this information, the variances can be computed:

Standard Hours Allowed


Actual Hours of Input, Actual Hours of Input, for Actual Output,
at Actual Rate at Standard Rate at Standard Rate
(AH × AR) (AH × SR) (SH × SR)
1,500 hours* × $7.5 per
$12,750 hour = $11,250 $10,500*

Labor rate variance Labor efficiency variance


= $1,500 U = $750 U
Spending variance = $2,250 U

*Given.

7.
Standard Hours Allowed
Actual Hours of Input, Actual Hours of Input, for Actual Output,
at Actual Rate at Standard Rate at Standard Rate
(AH × AR) (AH × SR) (SH × SR)
1,500 hours* × $3 per hour*
$3,600* = $4,500 $4,200*

Variable overhead Variable overhead


rate variance efficiency variance
= $900 F = $300 U
Spending variance = $600 F

*Given.
8. Standard
Quantity or Hours Standard Price or Standard
per Kit Rate Cost per Kit
Direct materials............................. 2.8 yards* $ 6 per yard $16.80
Direct labor ................................... 1.4 hours** $7.5 per hour*** 10.50
Variable manufacturing overhead . 1.4 hours $ 3 per hour 4.20
Total standard cost per kit ............. $31.50

* From part 3
** 1,400 hours (from part 5) ÷ 1,000 kits = 1.4 hours per kit.
*** From part 5

Вам также может понравиться