# COMM 112 Chapter 10: Notes and solutions for chapter problems

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1 Oct 2017
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## Document Summary

Additional problems: chapter 10 problems 10-20, 10-31. *20,000 units 4 metres per unit = 80,000 metres: direct materials price and quantity variances: 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 labour rate and efficiency variances: 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: a. *20,000 units 1. 5 dlhs per unit = 30,000 dlhs. Variable overhead spending variance = (ah ar) (ah sr) . 00 per dlh (32,500 dlhs 30,000 dlhs) = ,000 u (,250) (32,500 dlhs . 00 per dlh) = ,250 u b. Volume variance = fixed overhead rate (denominator hours standard hours allowed)

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