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Discussion#15.docx : / x Grades: View X (11) Facebook X -+ X 0730362913/cfi/6/28!/4/2/34/2@0:0 The standards call for more than one disk and documentation book per unit because of normal waste due to faulty DVDs and poor binding Actual costs for last week follow. DVDs purchased (@ $0.39) $ 780 Number of DVDs used 2 025 Number of Powerful Puffs games produced 1 000 Powerful Puffs documentation printed (@ $2.95) $4 425 Number of Powerful Puffs documentation used 1 005 Number of Mini-Mite Morphs games produced 800 Mini-Mite Morphs documentation printed (@ $4.75) $4 750 Number of Mini-Mite Morphs documentation used 825 Assembly labour cost (55 hours) $ 795 Management decided that it would require too much effort to keep track of how many DVDs and hours are used for each of the games separately. Accordingly, the DVD materials and labour variances are combined rather than computed separately for each game.80730362913/cfi/6/281/4/2/34/2@0:0 PROBLEMS 8.24 Developing direct cost standards; cost variances; use of variance analysis LO1, 2, 3, 4 The Mighty Morphs produces two popular games, Powerful Puffs and Mini-Mite Morphs. Following are the standard costs. Powerful Puffs Mini-Mite Morphs Standard Standard Standard Standard price quantity price quantity DVDS 1.08 DVD/unit $ 1.08 DVD/unit $ 0.35/DVD 0.35/DVD Documentation 1.03 book/unit $ 3/book 1.03 book/unit $ 5/book Assembly labour 0.01 hour/unit $ 0.03 hour/unit $ 15/hour 15/hour The standards call for more than one disk and documentation book per unit because of normal waste due to faulty DVDs and poor binding. Actual costs for last week follow. DVDs purchased (@ $0.39) $ 780X VitalSource Bookshelf X Discussion#15.docx : / x Grades: View X f (11) Facebook X + - g X 9780730362913/cfi/6/281/4/2/34/12/2/4/10/2@0:55.6 G To Number of Mini-Mite Morphs games produced 800 Mini-Mite Morphs documentation printed (@ $4.75) $4 750 Number of Mini-Mite Morphs documentation used 825 Assembly labour cost (55 hours) $ 795 Management decided that it would require too much effort to keep track of how many DVDs and hours are used for each of the games separately. Accordingly, the DVD materials and labour variances are combined rather than computed separately for each game. Required a. What is the documentation price variance for Mini-Mite Morphs? b. What is the efficiency variance for DVDs? c. What is the sum of all variances for assembly labour for both games? d. Discuss the pros and cons of building waste into the standards 8.25 Cost variance analysis; use of variance information LO3 Baker Street Animal Clinic routinely uses a particular serum in its vaccination program. Veterinary technicians give the injections. The standard dose is 10 cc per injection, and the cost has been $100 per 1000 cc. According to records 2000
