Managerial Accounting (5th Edition)
5th Edition
ISBN: 9780134128528
Author: Karen W. Braun, Wendy M. Tietz
Publisher: PEARSON
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Textbook Question
Chapter 11, Problem 11.19AE
Calculate and explain direct material variances (Learning Objective 2)
World Class Rings produces class rings. Its best-selling model has a direct materials standard of 16 grams of a special alloy per ring. This special alloy has a
Requirements
- 1. What is the actual cost per gram of the special alloy that World Class Rings purchased last month?
- 2. What is the direct material price variance?
- 3. What is the direct material quantity variance?
- 4. How might the direct material price variance for the company last month be causing the direct material quantity variance?
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University Rings produces class rings. Its best-selling model has a direct materials standard of 15 grams of a special alloy per ring. This special alloy has a standard cost of $65.50 per
In the past month, the company purchased 15,800 grams of this alloy at a total cost of $1,030,160. A total of 15,500 grams were used last month to produce 1,000 rings.
gram.
The following scenario relates to 5 questions.
Bear Co has developed a new model of television. The estimated labour time for the
first unit is 12 hours but a learning curve of 75% is expected to apply for the first eight
units produced
Note: The learning index for a 75% learning curve is-0-415.
Overhead production costs must be estimated based on a previous model, the
Leonardo, that was made by Bear Co. Production quantities and total overhead costs
for the last four months of production of the Leonardo were as follows:
Month
Output
Total overhead cost
(units)
$
September
1,800
278,200
October
2,000
310,000
November
1,700
252,900
December
1,000
200,000
The first phase of production has now been completed for the new television. The first unit actually took
12-5 hours to make and the total time for the first eight units was 34-3 hours, at which point the learning
effect came to an end.
What is the actual learning rate, and did the labour force learn more quickly or less quickly than…
The following scenario relates to 5 questions.
Bear Co has developed a new model of television. The estimated labour time for the
first unit is 12 hours but a learning curve of 75% is expected to apply for the first eight
units produced
Note: The learning index for a 75% learning curve is -0.415.
Overhead production costs must be estimated based on a previous model, the
Leonardo, that was made by Bear Co. Production quantities and total overhead costs
for the last four months of production of the Leonardo were as follows:
Month
Output
Total overhead cost
(units)
$
September
1,800
278,200
October
2,000
310,000
November
1,700
252,900
December
200,000
1,000
You have been asked to estimate the variable overhead cost per unit of the new television by assuming
that it will be the same as for the Leonardo, using the information provided for the last four months of its
manufacture, and applying a 6% inflation rate.
What is the variable cost per unit using the high-low method (to two decimal…
Chapter 11 Solutions
Managerial Accounting (5th Edition)
Ch. 11 - (Learning Objective 1) Which of the following is...Ch. 11 - (Learning Objective 2) The direct material price...Ch. 11 - Prob. 3QCCh. 11 - Prob. 4QCCh. 11 - Prob. 5QCCh. 11 - (Learning Objective 4) Which of the following is...Ch. 11 - Prob. 7QCCh. 11 - (Learning Objective 6) Which of the following is...Ch. 11 - Prob. 9QCCh. 11 - (Learning Objective 7Appendix) Which of the...
Ch. 11 - Compute the standard cost of direct materials...Ch. 11 - Compute the standard cost of direct labor...Ch. 11 - Explain a direct material variance (Learning...Ch. 11 - Prob. 11.4SECh. 11 - Calculate direct material variances when the...Ch. 11 - Calculate direct labor variances (Learning...Ch. 11 - Prob. 11.7SECh. 11 - Prob. 11.8SECh. 11 - Calculate fixed overhead variances (Learning...Ch. 11 - Calculate and interpret fixed overhead variances...Ch. 11 - Prob. 11.11SECh. 11 - Calculate and interpret overhead variances...Ch. 11 - Record costing transactions (Learning Objective 7)...Ch. 11 - Record standard costing transactions (Learning...Ch. 11 - Identify ethical standards violated (Learning...Ch. 11 - Vocabulary (Learning Objectives 1, 2, 3, 4, 5, 6)...Ch. 11 - Calculate standard cost and gross profit per unit...Ch. 11 - Calculate standard cost per unit (Learning...Ch. 11 - Calculate and explain direct material variances...Ch. 11 - Calculate missing direct material variables...Ch. 11 - Calculate and explain direct labor variances...Ch. 11 - Calculate and interpret direct material and direct...Ch. 11 - Calculate the material and labor variances...Ch. 11 - Record materials and labor transactions (Learning...Ch. 11 - Calculate the standard cost of a product before...Ch. 11 - Recognize advantages and disadvantages of standard...Ch. 11 - Compute and interpret overhead variances (Learning...Ch. 11 - Data Set for E11-28A through E11-32A Country...Ch. 11 - Data Set for E11-28A through E11-32A Country...Ch. 11 - Data Set for E11-28A through E11-32A Country...Ch. 11 - Make journal entries in a standard costing system...Ch. 11 - Prepare a standard cost income statement (Learning...Ch. 11 - Calculate standard cost and gross profit per unit...Ch. 11 - Calculate the standard cost per unit (Learning...Ch. 11 - Calculate and explain direct material variances...Ch. 11 - Calculate missing direct material variables...Ch. 11 - Calculate and explain direct labor variances...Ch. 11 - Prob. 11.38BECh. 11 - Prob. 11.39BECh. 11 - Prob. 11.40BECh. 11 - Prob. 11.41BECh. 11 - Recognize advantages and disadvantages of standard...Ch. 11 - Calculate and interpret overhead variances...Ch. 11 - Prob. 11.44BECh. 11 - Prob. 11.45BECh. 11 - Prob. 11.46BECh. 11 - Prob. 11.47BECh. 11 - Prob. 11.48BECh. 11 - Prob. 11.49APCh. 11 - Comprehensive standards and variances problem...Ch. 11 - Comprehensive standards and variances problem...Ch. 11 - Prob. 11.52APCh. 11 - Prob. 11.53APCh. 11 - Prob. 11.54BPCh. 11 - Comprehensive standards and variances problem...Ch. 11 - Comprehensive standards and variances problem...Ch. 11 - Work backward through labor variances (Learning...Ch. 11 - Determine all variances and make journal entries...Ch. 11 - Calculate labor variances in a hotel (Learning...
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