Beruflich Dokumente
Kultur Dokumente
11-1
CHAPTER 11
Study Objectives
1.
Setting
Standard Costs
Ideal vs.
normal
Case study
Analyzing and
Reporting
Variances from
Standards
Direct
materials
variances
Direct labor
variances
Manufacturing
overhead
variances
Reporting
variances
Chapter
11-4
Statement
presentation
Balanced
Scorecard
Financial
perspective
Customer
perspective
Internal
process
perspective
Learning and
growth
perspective
Chapter
11-5
Illustration 11-1
Facilitate management
planning
Contribute to management
control by providing basis
for evaluation of cost
control
Useful in highlighting
variances in management
by exception
Simplify costing of
inventories and reduce
clerical costs
Chapter
11-6
Chapter
11-7
Review Question
Most companies that use standards set them at a(n):
a. optimum level.
b. ideal level.
c. normal level.
d. practical level.
Chapter
11-9
Chapter
11-11
Review Question
The direct materials price standard should include an
amount for all of the following except:
a. receiving costs.
b. storing costs.
c. handling costs.
d. normal spoilage costs.
Chapter
11-13
Chapter
11-14
Chapter
11-16
Chapter
11-19
Review Question
A variance is favorable if actual costs are:
a. less than budgeted costs.
b. less than standard costs.
c. greater than budgeted costs.
d. greater than standard costs
Chapter
11-20
Chapter
11-21
Chapter
11-22
$ 73,500
181,780
88,990
44,000
$ 388,270
Standard Quantity
x Standard Price
(SQ) x (SP)
$73,500
(15,000 x $4.90)
$76,000
(15,200 x $5.00)
Chapter
11-25
Total Materials
=
Variance
(TMV)
$2,500 F
Actual Quantity
x Standard Price
(AQ) x (SP)
Materials Price
=
Variance
(MPV)
$75,000
(15,000 X $5.00)
$1,500 F
Standard Quantity
x Standard Price
(SQ) x (SP)
Materials
Quantity
Variance
(MQV)
$76,000
(15,200 x $5.00)
$1,000 F
Actual Quantity
Actual Price
(AQ) (AP)
Actual Quantity
Standard Price
(AQ) (SP)
Standard Quantity
Standard Price
(SQ) (SP)
Price Variance
1
Quantity Variance
Total Variance
1
Standard Hours
x Standard Rate
(SH) x (SR)
Total Labor
Variance
(TLV)
$182,400
(15,200 X $12.00)
$620 F
Actual Hours
x Standard Rate
(AH) x (SR)
Labor Price
Variance
(LPV)
$178,800
(14,900 X $12.00)
$2,980 U
Standard Hours
x Standard Rate
(SH) x (SR)
Labor
Quantity
Variance
(LQV)
$182,400
(15,200 X $12.00)
$3,600 F
Actual Hours
Actual Rate
(AH) (AR)
Actual Hours
Standard Rate
(AH) (SR)
Standard Hours
Standard Rate
(SH) (SR)
Price Variance
1
Quantity Variance
Total Variance
1
Chapter
11-35
$ 88,990
44,000
$ 132,990
Overhead Applied:
Standard hours allowed
Rate per direct labor hour
Total Overhead Variance
15,200
$
9*
$ 136,800
$
3,810
* Standard per unit overhead cost ($18) 2 direct labor hours per unit.
Chapter
11-36
Chapter
11-37
Budgeted Overhead:
Monthly budgeted fixed overhead
($540,000/12 months)
45,000
15,200
$
91,200
$ 88,990
44,000
132,990
$
3,210
15,000
15,200
Chapter
11-39
200
3
600
Illustration 11-23
In income statements
prepared for
management under a
standard cost
accounting system,
cost of goods sold is
stated at standard
cost and the
variances are
disclosed separately.
Chapter
11-43
Review Question
Which of the following is incorrect about variance
reports?
a. They facilitate management by exception.
b. They should only be sent to the top level of
management.
c. They should be prepared as soon as possible.
d. They may vary in form, content, and frequency
among companies.
Chapter
11-44
Balanced Scorecard
The balanced scorecard incorporates financial and
nonfinancial measures in an integrated system that links
performance measurement and a companys strategic goals.
The balanced scorecard evaluates company performance
from a series of perspectives. The four most commonly
employed perspectives are as follows.
Chapter
11-45
Balanced Scorecard
Review Question
Which of the following would not be an objective
used in the customer perspective of the balanced
scorecard approach?
a. Percentage of customers who would recommend
product to a friend.
b. Customer retention.
c. Brand recognition.
d. Earning per share.
Chapter
11-46
Balanced Scorecard
In summary, the balanced scorecard does the following:
1.
2.
3.
4.
Chapter
11-47
Think About It
Doctors and medical staff are under pressure to see
more patients each day.
With insurance companies pushing for reduced medical
costs, every facet of medicine has been standardized and
analyzed.
What are the potential implications of the quality of
health care?
Medical costs for a family of four hit $13,383 in 2006.
The United States spends more on a per person basis,
and as a percentage of GDP than most other countries.
Chapter
11-48
Copyright
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use of these programs or from the use of the information
contained herein.
Chapter
11-49