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Similaire à Jzanzig acc 512 chapter 11
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Jzanzig acc 512 chapter 11
- 1. Chapter 11 Standard Costs and Variance Analysis
- 5. A. Material Price Variance MPV = (AP – SP) AQ where: MPV = Material price variance AQ = Actual quantity of materials purchased AP = Actual unit price of materials SP = Standard unit price of materials Decision Rule: AP > SP Unfavorable AP < SP Favorable
- 6. B. Material Price Variance Journal Entry (Recorded at Time of Purchase) Raw Materials (AQ x SP) XXX Materials Price Variance [(AP-SP)AQ] XXX or XXX Accounts Payable (AQ x AP) XXX
- 7. C. Material Quantity Variance MQV = (AQ – SQ) SP where: MQV = Material quantity variance SP = Standard unit price of materials AQ = Actual quantity of materials put into production SQ = Standard quantity allowed for the output produced Decision Rule: AQ > SQ Unfavorable AQ < SQ Favorable
- 8. D. Material Quantity Variance Journal Entry (Recorded when materials are put into production) Work in Process (SQ x SP) XXX Materials Quantity Variance [(AQ-SQ)SP] XXX or XXX Raw Materials (AQ x SP) XXX
- 9. E. Labor Rate Variance LRV = (AR – SR) AH where: LRV = Labor rate variance AH = Actual labor hours worked AR = Actual labor rate SR = Standard labor rate Decision Rule: AR > SR Unfavorable AR < SR Favorable
- 10. F. Labor Efficiency Variance LEV = (AH – SH) SR where: LEV = Labor efficiency variance SR = Standard labor rate AH = Actual labor hours worked SH = Standard hours allowed for the output produced Decision Rule: AH > SH Unfavorable AH < SH Favorable
- 11. G. Journal Entry for Direct Labor Variances Work in Process (SH x SR) XXX Labor Rate Variance [(AR-SR)AH] XXX or XXX Labor Efficiency Variance [(AH-SH)SR] XXX or XXX Wages Payable (AH x AR) XXX
- 12. H. Controllable Overhead Variance Flexible budget level of overhead for the actual level of production Decision Rule: Actual > Flexible budget Unfavorable Actual < Flexible budget Favorable Actual overhead Controllable overhead variance = -
- 13. I. Overhead Volume Variance Overhead applied to production using standard overhead rate Decision Rule: Flexible budget > O/H applied Unfavorable Flexible budget < O/H applied Favorable Flexible budget level of overhead for actual level of production Overhead volume variance = -