1
CHAPTER 15 Answers to Multiple Choice – Theore Theoretical tical
1. 2. 3. !. 5. %.
c a a " $ c
7. 8. . 1#. 11. 12.
a a c $ a "
&olutions to Multiple Choice – Co'putational
1.
"
(X – P3.6 P3.60 0) x 1,600 X 2.
= =
P240 unfavorable mater terial ial price varian iance P3.75 actual purchase price per unit.
= =
3,00 3,000 0 unfa unfavo vora rabl blee mate materi rial al !uan !uanti tit" t" vari varian ance ce P3 #tan$ar$ price per unit
c
(30, (30,00 000 0 – 2,0 2,000 00)) X X
%ctual co#t of $irect material# %ctual #tan$ar$ price (30,000 x P3) Material price (ariance – )a(ora"le 3.
!.
a
'tan$ar 'tan$ar$ $ materi material al alloe alloe$ $ (2,000 (2,000 x 4)
= &,000 &,000 ilo# ilo#
(*,&00 – &,000) x P+.+0
=
P1*#2# +M ,uantit- (ariance )/
=
P75 &tan$ar$ +M +M cost per unit unit
$
2 .&0 5.
P&4,000 0,000 P %*###
=
2.+ x P30
a
(P3.60 - X) X) 1& 1&,000
= X =
(1+,000 - 16,000) x P3.40
P3,600 unfavorable / / price variance P3.40 #tan$ar$ price =
P3*!## +M ,uantit- (ariance )/
2 %.
"
(P11 – P10) x 14,000 unit# 7.
0
P1!*### un)a(ora"le
= =
P4,000 favorable efficienc" variance P! stan$ar$ + rate
= 0
P+,&00 favorable rate variance P3.8# actual + rate
= 0
P4,200 unfavorable efficienc" variance 11*12# actual hours wore$
"
(2,000 - 30 30,000) X
(X – P4) 2,000 r#
8.
c
(X – 10,000 r#.) P3.*+
.
a
#timate$ eel" ae# per emplo"ee mplo"ee benefit# (P240 x 2+) 5otal ivi$e$ b" no. of our# per emplo"ee 7ate per our /ultipl" b" no. of our# per unit &tan$ar$ $irect la"or cost per unit
1#.
P240 60 300 30 P 10 X 2 P 2#
"
'tan$ar$ our# alloe$ alloe$ for 00 00 unit# (00 x 2) = 1,&00 our# (2,000 our# – 1,&00 our#) x 10 = P2*### un)a(ora"le + e))icienc- (ariance 11.
a.
8eel" ae# per orer 8orer#9 benefit# (P+00 x 20) 5otal ivi$e$ b" no. of our# ore$ 7ate per our :our# re!uire$ per unit &tan$ar$ + cost per unit 12.
P+00 100 600 40 P 1+ x 2 P 3#
a
(X – P6.30) x 20,000 r#. X P+.&& x 20,000 our#
= =
P&,400 favorable rate variance P+.&& actual rate
=
P117*%## Actual + cost
3 13.
a Standard DL cost per unit: %ctual ae# pai$ abor rate variance – unfavorable abor efficienc" variance – favorable 'tan$ar$ co#t ivi$e$ b" unit# pro$uce$
P33,6&0 ( 1,*20) +2+ P32,4&+ 6,2+0
P+.20
Standard DM cost cost per unit: /aterial co#t /aterial price variance – favorable /aterial u#ae variance – unfavorable 'tan$ar$ material co#t ivi$e$ b" unit# pro$uce$
P1*,0+ 1,400 ( &0 ) P1*,+6 6,2+0
2.&1
&tan$ar$ pri'e cost per unit
1!.
c
'tan$ar$ overea$ co#t alloe$ (P (P4 x 3, 3,+00 #t$. our#) %ctual overea$ co#t incurre$ 4(erall o(erhea$ (ariance – )a(ora"le 15.
P+*+,000
+62,000 P 13*###
$
u$ete$ our# per mont (600,000 12) 'tan$ar$ our# alloe$ (26,000 x 2) ifference in time ?ixe$ overea$ rate (P3,000,000 600,000 r#.) 4(erhea$ (olu'e (ariance – )a(ora"le
18.
P*2,000 1+,000 P87*###
"
%ctual manufacturin overea$ (P2+0,000 ; P3 P32+,000) u$ete$ overea$> ?ixe$ (P3,000,00012) P2+0,000 @ariable ariabl e at #tan$ar$> #tan$ar $> 'tan tan$ar$ r#. allo loe$ (2 (26,000 x 2) +2,000 @ariab iable #t$ #t$. rate (3,60 ,600,00060 600,000) x 6 312,000 4(erhea$ controlla"le (ariance – )a(ora"le 17.
P14,000 12,600 P 1*!##
$
%pplie$ overea$ (P42,000 ; P30,000)
P8.#1
$
+0,000 +2,000 2,000 x + P1#*###
4
%ctual variable overea$ @ariable overea$ alloe$ (+,000 x 2 x 3) aria aria"l "lee o(e o(erh rhea ea$ $ cont contrrolla olla"l "lee (ar (aria ianc ncee – un)a un)a(o (ora ra"l "lee
1.
a April: %ctual factor" overea$ u$ete$ overea$> ?ixe$ (10 x 40 x 1+,000) P60,000 @ariable at #tan$ar$ (10 x 60 x 12,000) *2,000 4(erhea$ controlla"le (ariance – un)a(ora"le May: %ctual factor" overea$ u$ete$ overea$> ?i ?ixe$ @ariable at #tan$ar$ (10 x 60 x 1+,000) 4(erhea$ controlla"le (ariance – )a(ora"le
2#.
P140,100
132,000 P 8*1##
P14,300 P60,000 0,000
1+0,000 P 7##
c
u$ete$ fixe$ overea$ 'tan$ar$ overea$ alloe$ 4(erhea$ (olu'e (ariance 21.
P&2,000 30,000 P52* P52*## ### #
P60,000 60,000 P #
c
5e 5e entr entr" " to reco recor$ r$ / u#e$ u#e$ i# to $ebi $ebitt 8A 8AP P at #tan #tan$a $ar$ r$ pric price# e# an$ an$ #tan #tan$a $ar$ r$ !uan !uanti titi tie# e# (4+0 (4+0 unit unit## x P = P4,0 P4,0+0 +0). ). An ti# ti# !ue# !ue#ti tion on,, all all / vari varian ance ce## are are recor$e$ at te time 8AP 8AP i# care$. care$. 5e material# price variance an$ te te material# !uantit" !uantit" variance variance mu#t be compute$. compute$. 5e proBect proBect u#e$ more unit# at a ier price tan e#timate$, #o bot variance# variance# ill be unfavorable unfavorable ($ebit#). 5e material# !uantit" variance i# P4+0 < C(+00 C(+00 – 4+0) x PD. 5e material# price price variance i# P+00 < C+00 unit# x (P10 - P)D. /aterial# i# cre$ite$ for te actual price# an$ actual !uantitie# (+00 x P10 = P+,000). 22.
a
5e entr" to recor$ accrue$ pa"roll i# to care 8AP at te #tan$ar$ ae rate time# te #tan$ar$ #tan$ar$ number of our# an$ to cre$it accrue$ accrue$ pa"roll pa"roll for te actual actual pa"roll. 5e proBect proBect re!uire$ mor our# our# but a loer ae rate tan tan e#timate$. e#timate$. :ence, te labor efficienc" variance ill be be unfavorable (a $ebit)E te labor price variance ill be favorable (a cre$it). abor efficienc" varian iance> (+0-4+) x P12 abor price ice varian iance> (P12-P10 P10) x +0
23.
$
= =
P60 P60 < P10 P100 ?
+
5e entr" i# to $ebit applie$ factor" overea$ fixe$) an$ cre$it factor" overea$ control (fixe$) for teir re#pective balance#. balance#. 5e $ifference i# attributable #olel" to te pro$uction volume variance becau#e te bu$et (#pen$in) variance i# Fero (actual fixe$ factor" overea$ = te te bu$ete$ amount). 5e volume variance i# unfavorable becau#e fixe$ overea$ i# un$erapplie$. 5e un$erapplication (te unfavorable volume variance $ebite$) i# P2,+00 CP32,+00 bu$ete$ fixe$ factor" overea$ – (2,000 our# x P1+ per our).
2!.
a
5e bu$et variance i# reconiFe$ b" a $ebit, iven tat more a# #pent for tat activit" activit" tan a# e#timate$. 5e entr" to recor$ te unfavorable unfavorable variable variable overea$ bu$et variance i# to care te variable overea$ volume variance account for te appropriat appropriatee amount. 5e variable variable overea$ overea$ applie$ applie$ i# care$ care$ for it# balance. balance. 5e variable overea$ control control account i# cre$ite$ for it# balance. balance. 5e#e entrie# ill re#ult in a Fero balance in bot te applie$ an$ te control account# a##umin tat no variable overea$ efficienc" variance exi#te$. %ctual %ctual varia variable ble over overea ea$ $ incur incurre$ re$>> (P+ x +30 +30 our# our#)) = %pplie$ variable overea$> (P4.+0 x +30 our#) = @ariable overea$ bu$et variance (u)
&46T4& T4 PR49EM&
P2,6+0 P2,6+0 2,3&+ P 26+
6
Pro"le' 15:1
1.
Material A:1; Materials Quantity Variance Variance 'tan$ar 'tan$ar$ $ !uant !uantit" it" ( ( x 4,00 4,000) 0) at at #tan$a #tan$ar$ r$ pric pricee (P0.20 (P0.20)) %ctu %ctual al !uan !uanti tit" t" (36 (36,2+0 ,2+0)) at #tan #tan$ $ar$ ar$ price rice (P0 (P0.20) .20) /aterial# !uantit" variance (2+0 x P0.20)
P *,200 *,200 *,2+0 ,2+0 P +0 (<)
Materials Price Variance Variance %ctu %ctual al !uan !uanti tit" t" (36 (36,2+0 ,2+0)) at #tan #tan$ $ar$ ar$ price rice (P0 (P0.20) .20) %ctua tual !uantit" tit" (36,2+ ,2+0) at actual price (P0.204) /aterial# price variance (36,2+0 x P.004)
P *,2+ *,2+0 0 *,3+ P 14+ (<)
Material A:2 Materials Quantity Variance Variance 'tan$ar$ !uantit" (.2 x 4,000) at #tan$ar$ #tan$ar$ price (P0.30) P11,040 %ctu %ctual al !uan !uanti tit" t" (36 (36,400 ,400)) at #tan #tan$ $ar$ ar$ price rice (P (P.30) .30) 10, 10,20 20 /aterial# !uantit" variance (400 x P.30) P 120 (?)
2.
Materials Price Variance Variance %ctu %ctual al !uan !uanti tit" t" (36 (36,400 ,400)) at at #ta #tan$ n$ar ar$ $ pri price ce (P0 (P0.30) .30) %ctual !uantit" (36,400) at actual price (P0.2&) /aterial# price variance (36,400 x P0.02)
P10, P10,2 20 0 10,12 P *2& (?)
&u''ar-; Materials %-1 %-2 5otal
Total Variance Variance P1+ < &4& ? P6+3 ?
Quantity Variance Variance P +0 < 120 ? P *0 ?
Price Variance Variance P14+ < *2& ? P+&3 ?
Work in process Materials quantity variance (F) Materials price variance (F) Materials inventory o c!ar"e# $ork in process $it! stan#ar# cost o% &aterials, re&ove# actual cost o% &aterials %ro& inventory, inventory, an# recor# recor# &aterials variances'
18,240 70 583 17,587
* Pro"le' 15:2
1.
a"or ariance Anal-sis a"or Class AA; Labor Efficiency Variance Variance 'tan tan$ar$ our# (1 (1,01 ,010) G #t #tan$ar$ rate (P (P11.20) %ctual our# (1,0+0) G #tan$ar$ rate (P11.20) abor efficienc" variance (40 our# x P11.20)
P11 P11,312 11,*60 P 44& (<)
Labor Rate Variance Variance %ctual our# (1,0+0) G #tan$ar$ rate (P11.20) %ctual our# (1,0+0) G actual rate (P11.10) abor rate variance (1,0+0 our# x P0.10)
P11,*60 11,6++ P 10+ (?)
a"or Class 99; Labor Efficiency Variance Variance 'tan$ar$ our# (2,020) G #tan$ar$ rate (P12) %ctual our# (2,010) G #tan$ar$ rate (P12) abor efficienc" variance (10 our# x P12)
P24,240 24,120 P 120 (?)
Labor Rate Variance Variance %ctual our# (2,010) G #tan$ar$ rate (P12) %ctual our# (2,010) G actual rate (P11.0) abor rate variance (2,010 our# x P0.10)
P24,120 23,1 P 201 (?)
&u''ar-; Labor Class %% 5otal
2.
Labor Efficiency Variance P 44& < 120 < P 32& <
Work in process aor e%%iciency variance (*) aor rate variance (F) Factory payroll o c!ar"e Work in rocess $it! stan#ar# cost -% #irect laor, re&ove# actual laor cost %ro& Factory ayroll an# recor# recor# laor variance'
Pro"le' 15:3
Labor Rate Variance P 10+ ? 201 ? P 306 ?
Total Variance P343 < 321 ? P 22 <
35,552 328 30+ 35,574
&
a.
Work in rocess Materials quantity variance Materials price variance Materials inventory o c!ar"e Work in rocess $it! stan#ar# cost o% &aterials, re&ove actual cost o% &aterials %ro& Materials /nventory an# recor# recor# &aterials variances'
340,800 480 +,.28 334,352
Computations of Materials Variances: M1 Materials uantity ariance ariance 'tan 'tan$a $ar$ r$ !uan !uanti tit" t" at #tan #tan$ $ar$ ar$ price rice (20 (200,000 ,000 x P1.2 P1.20 0) %ctual !uantit" at #tan$ar$ price (201,000 x P1.20) /aterial# !uantit" variance (1,000 x P1.20)
P240 P240,0 ,00 00 241,200 P 1,200 (<)
M1 Materials rice ariance ariance %ctual !uantit" at #tan$ar$ price (201,000 x P1.20) %ctual !uantit" at actual price (201,000 x P1.16) /aterial# price variance (201,000 x P0.04)
P120,600 233,160 P &,040 (?)
M2 Materials uantity ariance ariance 'tan$ar$ !uantit" at #tan tan$ar$ price ice (*0,000 x P1.44) %ctual !uantit" at #tan$ar$ price (6,+00 x P1.44) /aterial# !uantit" variance (+00 x P1.44)
P10 P100,&00 100,0&0 P *20 (?)
M2 Materials rice ariance ariance %ctual !uantit" at #tan$ar$ price (6,+00 x P1.44) %ctual !uantit" at actual price (6,+00 x P1.4+6) /aterial# price variance (6,+00 x P0.016)
P100,0&0 101,12 P 1,112 (<)
&u''ar-; Materials 7/-1 7/-2
Problem !"# $continued%
Quantity Variance Variance P1,200 (<) *20 (?) P 4&0 (<)
Price Variance Variance P&,040 (?) 1,112 (<) P6,2& (?)
Total P6,&40 (?) 32 (<) P6,44& (?)
".
Work in rocess aor %%iciency ariance ariance aor ate ariance ariance Factory ayroll o c!ar"e Work in rocess $it! stan#ar# cost o% #irect laor, laor, re&ove actual cost %ro& Factory ayroll an# recor# recor# laor variances'
48,000 1,53+ 1,032 50,5+8
Computations of Labor Variances: aor %%iciency ariance ariance 'tan tan$ar$ our# at #tan tan$ar$ rate (2,+00 x P1.20 .20) %ctual our# at #tan$ar$ rate (2,+&0 x P1.20) abor efficienc" variance (&0 x P1.20) aor ate ariance ariance %ctual our# at #tan$ar$ rate (2,+&0 x P1.20) %ctual our# at actual rate (2,+&0 x P1.60) abor rate variance (2,+&0 x P.40)
P4& P4&,000 4,+36 P 1, 1,+36 (<) P4,+36 +0,+6& P 1,032 (<)
Pro"le' 15:! %nnual fixe$ co#t# %nnual variable co#t# bu$ete$ for normal volume 5otal co#t# at normal volume
P +40,000 *20,000 P1,260,000
'tan$ar$ co#t per our> (P1,260,000 24,000 r#)
P+2.+0
'tan$ar$ 'tan$ar$ co#t per unit of pro$uct> pro$uct> (P1,260,0 (P1,260,000 00 1&0,00 1&0,000 0 unit# unit#
P *.00
2.
/a" pro$uction 'tan$ar$ co#t per unit 5otal #tan$ar$ co#t
1+,1&0 unit# x P *.00 P106,260
3.
'tan$ar$ co#t# %ctual co#t#> ?ixe$ @ariable 5otal overea$ variance
P106,260
1.
!.
5.
P46,000 60,&+2
106,&+2 P +2 (<)
u#"et ariance ariance u$ete$ overea$> @ariable (1+,1&0 (1+,1&0 x P4 #t$ variable variable rate) rate) P60,*20 P60,*20 ?ixe$ (P+40,000 12) 4+,000 %ctual overea$ co#t Hverea$ bu$et variance
P10+,*20 106,&+2 P 1,132 (<)
olu&e ariance arianc e 'tan$ar$ co#t# (1+,1&0 x P3.00 fixe$ #t$ rate) ?ixe$ co#t# (P+40,000 12) Hverea$ volume variance
P 4+ 4 +,+40 4+,000 P +40 (?)
10 Pro"le' 15:5 1. a.
".
&,200 10,144 2,44 06,400
8or in proce## (#tan$ar$ co#t) abor efficienc" variance abor rate variance ?actor" pa"roll (actual co#t)
+12,*00 320
8or in proce## (#tan$ar$ co#t) Hverea$ bu$et variance Hverea$ volume variance /anufacturin overea$ control (%ctual co#t)
362,600 1,000
$.
?ini#e$ oo$# 8or in proce## 2,+00 unit# x P*0.&0
1,**4,+00 1,**4,+00
e.
%ccount# receivable 'ale# 2,16* unit# x P1,040
2,2+3,6&0
Io#t of oo$# #ol$ ?ini#e$ oo$# 2,16* unit# x P*0.&0
1,+3&,13*
c.
).
=.
2.
/aterial# !uantit" variance abor rate variance Hverea$ volume variance Io#t of oo$# #ol$ Hverea$ bu$et variance /aterial# price variance abor efficienc" variance
4,020 +0,000
2,400 361,200
2,2+3,6&0
1,+3&,13*
2,44 4,020 2,400 2,100 1,000 10,144 320
>ueen Co'panPartial nco'e &tate'ent Month En$e$ April 3#* 2#1#
'ale# Io#t of oo$# #ol$ Io#t of oo$# #ol$ at 't$ co#t /aterial price variance abor efficienc" variance Hverea$ bu$et variance /aterial !uantit" variance abor rate variance Hverea$ volume variance Jro## profit
P2,2+3,6&0 P1,+3&,13* 10,144 320 1,000 ( 2,44) ( 4,020) ( 2,400)
1,+40,23* P *13,443
11 Pro"le' 15:% +irect Materials ariances; /aterial# price variance> /aterial# !uantit" variance>
P14,000 - (P3 x +0,000) (41,+00 – 40,000) x P3
= =
P1,000 (?) P4,+00 (< ( <)
+irect a"or ariances; abor rate variance> abor efficienc" variance>
16,000 – (21,000 x ) (21,000 – 20,000) x
= =
P*,000 (<) P,000 (< ( <)
4(erhea$ ariances; Hverea$ controllable variance> %ctual overea$ u$ete$ overea$ at #tan$ar$ labor our#> ?ixe$ @ariable (10,000 x P4) Hverea$ controllable variance Hverea$ volume variance> u$ete$ overea$ at #tan$ar$ labor our# 'tan$ar$ overea$ (10,000 x 2) x * Hverea$ volume variance
P1+&,000 P120,000 40,000
160,000 P 2,000 (?) P160,000 140,000 P 20,000 (<)
Pro"le' 15:7 +irect Materials ariances; /aterial# price variance> /aterial# !uantit" variance>
(P*.30 – P*) x +,100 (+,100 - 4,00) x P*
= =
P1,+30 (< (<) P1,400 (<)
+irect a"or ariances; abor rate variance> abor efficienc" variance>
(P12.+0 - P12) x *,000 (*,000 - *,3+0) x P12
= =
P6,000 (<) P4,200 (?)
4(erhea$ ariances; Hverea$ controllable variance> %ctual overea$ P*4,20 u$ete$ overea$ at #tan$ar$ labor our#> ?ixe$ P1&,*+0 @ariable (*,3+0 x P*.+0) ++,12+ *3,&*+ Hverea$ controllable variance P 1,04+ (<) Hverea$ volume variance> u$ete$ overea$ at #tan$ar$ labor our# P*3,&*+ %pplie$ overea$ (*,3+0 x P10) *3,+00 Hverea$ volume variance P 3*+ (<)
12
Pro"le' 15:8
+irect Materials ariances /aterial# price variance> /aterial# !uantit" variance>
(P1 - P.0) x +&,000 (+&,000 - 60,000) x P.0
= =
P+,&00 (<) P1,&00 (?)
+irect a"or ariances abor rate variance> abor efficienc" variance>
(P11.+0 - P12) x 4,00 (4,00 - +,000) x P12
= =
P2,4+0 (?) P1,200 (?)
4(erhea$ ariances; Hverea$ controllable variance> %ctual overea$ u$ete$ overea$ at #tan$ar$ labor our#> ?ixe$ @ariable Hverea$ controllable variance Hverea$ volume variance> u$ete$ overea$ at #tan$ar$ labor our# %pplie$ overea$ (+,000 x P4.&) Hverea$ volume variance
P2+,400 P10,400 14,000
24,400 P 1,000 (<) P24,400 24,000 P 400 (<)
Pro"le' 15: a/
+ire irect Ma Material ials ariances; /aterial# price variance> (* (*.30 - P*) x +&,000 /aterial# !uantit" variance> (+&,000 - 60,000) x P*
= =
+irect a"or ariances> abor rate variance> (P (P11.20 - P12) x 11,+00 = abo aborr effi effici cien enc" c" vari varian ancce> (11, (11,+ +00 - P12 P12,0 ,00 00) x P12 P12 = 4(erhea$ ariances; Hverea$ controllable variance> %ctual overea$ u$ete$ overea$ at #tan$ar$ our#> ?ixe$ P0,000 @ariable (12,000 x P3) 36,000 Hverea$ controllable variance Hverea$ volume variance> u$ete$ overea$ at #tan$ar$ our# %pplie$ overea$ (12,000 x P) Hverea$ volume variance
P1*,400 (<) P14.000 (?)
P,200 (? (?) P6,0 P6,000 00 (?) (?)
P132,000
126,000 P 6,000 (<) P126,000 10&,000 P 1&,000 (<)
13
Pro"le' 15: continue$/ "/
/aterial# /aterial price variance %ccount# pa"able
406,000 1*,400 423,400
8or in proce## /aterial# !uantit" variance /aterial#
420,000 14,000 406,000
?actor" pa"roll abor rate variance Pa"roll pa"able
13&,000 ,200 12&,&00
8or in proce## abor efficienc" variance ?actor" pa"roll %pplie$ factor" overea$ Hverea$ controllable variance Hverea$ volume variance ?actor" overea$ control
144,000 6,000 13&,000 10&,000 6,000 1&,000 132,000
Pro"le' 15:1# a/
+ire irect Ma Material ials ariances; /aterial# price variance> (P (P3.40 - P3) x 1*,*00 /at /aterial# !uantit" it" variance> (1 (1*,*00 - 1&,000) x P3
= =
P*,0&0 (<) P 00 (? (?)
+irect a"or ariances; abor rate variance> (P11.&0 - P12) x 2,+0 abor efficienc" variance> (2,+0 - 3,000) x P12
= =
P +0 (?) P 600 (?)
4(erhea$ ariances; Hverea$ controllable variance> %ctual overea$ u$ete$ overea$ at #tan$ar$ r#> ?ixe$ P2&,000 @ariable (3,000 x 20) 60,000 Hverea$ controllable variance Hverea$ volume variance> u$ete$ overea$ at #tan$ar$ r#. %pplie$ overea$ Hverea$ volume variance
P&*,+00
&&,000 P +00 (?) P&&,000 0,000 P 2,000 (?)
14
Pro"le' 15:1# continue$/ "/
Hol- Manu)acturin= Co'pannco'e &tate'ent Month En$e$
'ale# Io#t of oo$# #ol$ (actual co#t) Io#t of o oo$# #o #ol$ at at #t #tan$ar$ co co#t /aterial# price variance /aterial# !uantit" variance abor price variance abor efficienc" variance Hverea$ Hverea$ controllab controllable le variance variance Hverea$ volume variance Jro## profit Hperatin expen#e# Ket income
P240,000 P1&0,000 *,0&0 (00) (+0) (600) (+00) ( 2,000)
1&2,40 +*,+10 2+,000 P 32,+10
Pro"le' 15:11 a/ 1.
2.
3.
4.
+.
6.
*.
&.
8or in proce## /aterial# !uantit" variance /aterial#
6,1+0 61+ 6,*6+ 6,000 1+0 6,1+0
?actor" pa"roll abor rate variance Pa"roll pa"able 8or in proce## abor efficienc" variance ?actor" pa"roll
16,&00 420 16,3&0 16,000 &00 16,&00
?actor" overea$ control %ccount# pa"able 8or in proce## %pplie$ factor" overea$
24,200 24,200 24,000 24,000
%pplie$ factor" overea$ Hverea$ volume variance Hverea$ controllable variance ?actor" overea$ control
24,000 400
?ini#e$ oo$# 8or in proce##
46,000
200 24,200
46,000
1+ .
%ccount# receivable 'ale# Pro"le' 15:11 continue$/
*0,000
10.
46,000
11.
"/
Io#t of oo$# #ol$ ?ini#e$ oo$# 'ellin an$ a$mini#trative expen#e# %ccrue$ expen#e#
*0,000
46,000 2,000 2,000
enus Co Corporation nco'e &tate'ent Month En$e$
'ale# Io#t of oo$# #ol$ (actual co#t) Io#t of o oo$# #o #ol$ at at #t #tan$ar$ co co#t /aterial price variance /aterial !uantit" variance abor rate variance abor efficienc" variance Hverea$ controllable variance Hverea$ volume variance Jro## profit 'ellin an$ a$mini#trative expen#e# Ket income
P*0,000 P46,000 61+ 1+0 ( 420) &00 ( 200) 400
4*,34+ 22,6++ 2,000 P20,6++