Chapter 11 Solution- cost accounting

PROBLEM 11-35 (45 MINUTES)

(1) ACTUAL VARIABLE OVERHEAD A$%u& Hour (A)

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A$%u& R&%# (AVR) 12 #r 0our

VARIABLE-OVERHEAD VARIABLE-OVERHEAD SPENDING AND EFFICIENCY VARIANCES (Hour ! D"r#$%-L&'or Hour) (2) (3) (4); VARIABLE OVERHEAD FLE@IBLE BUDGET APPLIED TO VARIABLE OVERHEAD >OR-IN-PROCESS S%&*+&r+ S%&*+&r+ A$%u& S%&*+&r+ S%&*+&r+ Ao,#+ Ao,#+ : S%&*+&r+ : : Hour R&%# R&%# Hour Hour R&%# (A) (SVR) (SVR) (S) (S) (SVR) .5// 0our

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FI@ED-OVERHEAD BUDGET AND VOLUME VARIANCES (Hour ! D"r#$%-L&'or Hour) (1) (2) (3) ACTUAL BUDGETED FI@ED OVERHEAD FI@ED FI@ED APPLIED TO OVERHEAD OVERHEAD >OR IN PROCESS S%&*+&r+ S%&*+&r+ F":#+Ao,#+ O7#r0#&+ Hour R&%# ./// 1=// #r 0our 0our 145.///

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Bu+8#%#+ 6":#+ o7#r0#&+ ! ./// +"r#$%-&'or 0r= 1 #r 0our= ;  So<# &$$ou*%&*% ,ou+ +#"8*&%# & o"%"7# 7ou<# 7&r"&*$# & u*6&7or&'#= PROBLEM 11-3 (4/ MINUTES) 1=

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PROBLEM 11-3 (25 MINUTES) 1=

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Without having complete information, it is difficult to be 100% certain. However, by an analysis of data related to the volume variance, a lengthy strike appears to be a strong possibility. Lackawanna had planned to work ,000 machine hours during the period, giving the company the capability of  producing !,000 finished units ",000 hours #  units per hour$. ctual  production amounted to only 1,&00 units, leaving the firm far shy of its  production goal.  strike is a plausible e#planation PROBLEM 11-45 (45 MINUTES) M""*8 &
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