Font Voice Sensitive X Paragraph Styles Starbucks Faces Many Situations Where The Decision Tools Learned In This Chapter 1 (57 KiB) Viewed 35 times
Font Voice Sensitive X Paragraph Styles Starbucks Faces Many Situations Where The Decision Tools Learned In This Chapter 2 (56.47 KiB) Viewed 35 times
Font Voice Sensitive X Paragraph Styles Starbucks Faces Many Situations Where The Decision Tools Learned In This Chapter 3 (16.08 KiB) Viewed 35 times
Font Voice Sensitive X Paragraph Styles Starbucks faces many situations where the decision tools learned in this chapter are needed. Assume that during the past month, Starbucks produced 10,000, 50-pound sacks of dark roast Sumatra coffee beans, with the standard cost for one 50-pound sack of dark roast Sumatra as follows. Standard Manufacturing Cost Elements Quantity * Price Cost Direct materials (unroasted beans) 60 lbs. * $ 2.00 = $120.00 Direct labor 0.25 hours * $16.00 = 4.00 Overhead 0.25 fours * $48.00 12.00 $136.00 During the month, the following transactions occurred in manufacturing the 10,000, 50-pound sacks of Sumatra coffee. 1. Purchased 620,000 pounds of unroasted beans at a price of $1.90 per pound for a total cost of $1,178,000. 2. All materials purchased during the period were used to make coffee during the period. 2. 2,300 direct labor hours were worked at a total labor cost of $36,340 (an average hourly rate of $15.80). 4. Variable manufacturing overhead incurred was $34,600, and fixed overhead incurred was $84,000. The manufacturing overhead rate of $48.00 is based on a normal capacity of 2,600 direct labor hours. The total overhead budget at this capacity is $83,980 fixed and $40,820 variable. a
> a 21 Paragraph 5 Styles 1a, b, c) Use the matrix to calculate the amount of the variance that is due to a difference in price and the amount that is due to a difference in quantity for Materials: Actual Quantity x Actual Price Actual Quantity Standard Price Standard Quantity X Standard Price (AQ x AP) (AQ * SP) (SQ X SP) Price Variance Quantity Variance Total Materials Variance Price Variance + Quantity Variance PROOF/SHORTCUT: 1d, e, f) Use the matrix to calculate the amount of the variance that is due to a difference in price and the amount that is due to a difference in quantity for Labor: a Actual Hours x Actual Rate Actual Hours x Standard Rate Standard Hours X Standard Rate (AH X AR) (AH SR) (SHX SR) Price Variance Quantity Variance Totallabar Variance
2) Manufacturing Overhead Variance:
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