Management and Organizational Studies 3199Y Lecture Notes - Lecture 10: Deutsche Luft Hansa, Fixed Cost, Level Set

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 3199Y
• Professor: hawn

Document Summary

*20,000 units 4 metres per unit = 80,000 metres. Direct materials price variance = aq (ap sp) 78,000 metres (. 75 per metre . 50 per metre) = ,500 u. Direct materials quantity variance = sp (aq sq) . 50 per metre (78,000 metres 80,000 metres*) = -,000 f: direct materials price and quantity variances, direct labour rate and efficiency variances, a. Direct labour rate variance = ah (ar sr) 32,500 dlhs (. 80 per dlh . 00 per dlh) = -,500 f. Direct labour efficiency variance = sr (ah sh) . 00 per dlh (32,500 dlhs 30,000 dlhs*) = ,000 u. *20,000 units 1. 5 dlhs per unit = 30,000 dlhs. Alternative solution: (,250) (32,500 dlhs . 00 per dlh) = ,250 u. Variable overhead spending variance = (ah ar) (ah sr) . 00 per dlh (32,500 dlhs 30,000 dlhs) = ,000 u. . 00 per dlh (25,000 dlhs 30,000 dlhs) = -,000 f. Problem 10-20 (continued: the total of the variances would be: