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Bottoms up company manufactures recyclable bottles. Consider the following selected data: direct materials direct labor standards per bottle 450 oz of input at $0.015 /oz

Bottoms up company manufactures recyclable bottles. Consider the following selected data: direct materials direct labor standards per bottle 450 oz of input at $0.015 /oz 0.075 labor hours at $21/ labor hour actual performance: bottle produced and sold 17,000 units direct materials purchased and used 7,150,000 oz labor hours used 1,400 labor hours total direct materials cost $100,100 total direct labor costs $27,650 required: a) calculate price variance for direct materials b) provide a possible reason for favorable or unfavorable price variance for direct materials c) calculate quantity variance for direct materials. Chapter8 variance Analysis and standard costing 221 d) provide a possible reason for favorable or unfavorable quantity Variance for Direct Materials e) calculate labor rate Variance. f) provide a possible reason for unfavorable or favorable Direct labor g) calculate efficiency variance for direct labor h) provide a possible reason for unfavorable or favorable efficiency Variance for Direct labor

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ACC 232 NAME CH 8 Case Study Workbook AP-14B on pp 220-221 Part a) and bj Direct Materials Variances and Analysis Direct Materials Variance: Actual Total Price AQ X SP Quantity Total Results/ Standard Actual Variance Variance Standard Units Allowed/ Results Allowed Unit Units Produced Direct Materials AO SC Materials Units Produced AP SP Price Unit AQ x AP DMPV AQ x SP DMOV SO x SP Total Cost DMV Total Direct Materials Variance Provide a possible reason for the favorable or unfavorable Direct Materials Price Variance. Provide a possible reason for the favorable or unfavorable Direct Materials Quantity Variance. Provide a possible reason for the favorable or unfavorable Total Direct Materials Variance. Part c) and d) Direct Labor Variances and Analysis Direct Labor Variance: Actual Total Labor AQ x SP F Direct Labor Total Results/ Standard Actual Rate Efficiency Standard Allowed Units Results Variance Variance Allowed Units Produced Unit Direct Labor AD DL H/Unit AP DL price unit SP AQ x AP AQ x SP DLEV SQ x SP Total Cost DLV Total Direct Labor Variance Provide a possible reason for the favorable or unfavorable Direct Labor Rate Variance. Provide a possible reason for the favorable or unfavorable Direct Labor Efficiency Variance. Provide a possible reason for the favorable or unfavorable Total Direct Labor Variance. Part ep and f) Overhead Variances and Analysis Variable Overhead Variance: Actual Total VOH AQ x SP F Direct Labor Total Results/ Standard Actual Spending or Efficiency Standard Allowed Units Results Variance Variance Allowed Unit Units Produced Variable Manufacturing Overhead SO Units ( D.LH) VOH price DLH SP AQ x AP VOHSV AQ x SP DLEV SQ x SP Total Cost VOHY Total Variable Overhead Variance

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