Cost Accounting (15th Edition)
Cost Accounting (15th Edition)
15th Edition
ISBN: 9780133428704
Author: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
Question
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Chapter 7, Problem 7.23E

1.

To determine

Direct Material Price Variance

Direct material price variance in the difference between the budgeted per unit cost of raw material and the actual per unit cost multiplied by the number of units purchased.

Direct Material Efficiency Variance

Direct material efficiency variance is the difference between the budgeted quantities and the actual quantities purchased at a specific price.

Direct Labor Efficiency Variance

Direct labor efficiency variance is the difference between the actual time consumed in manufacturing unit and the standard time allowed or the budgeted time for the manufacture of a unit multiplied by the standard direct labor rate.

Price Variance, Efficiency Variance and Flexible Budget Variance for Direct Material and Direct Manufacturing Labor and percentages of Direct Material Variance and Direct Manufacturing Labor Variance.

2.

To determine

Price Variance, efficiency variance and flexible budget variance for direct material and direct manufacturing labor and percentages of direct material variance and direct manufacturing labor variance in May 2014.

3.

To determine

The usage of new material that was experimented in May 2014

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