CHAPTER 9Brief Exercise 9-1 (20 minutes)1. Cost per 15-gallon container......................... $115.00Less 2% cash discount.................................. 2.30Net cost........................................................ 112.70Add shipping cost per container ($130 ÷ 100)............................................................ 1.30Total cost per 15-gallon container (a)............ $114.00Number of quarts per container (15 gallons × 4 quarts per gallon) (b)......... 60Standard cost per quart purchased (a) ÷ (b). $1.902. Content per bill of materials...................... 7.6 quartsAdd allowance for evaporation and spillage (7.6 quarts ÷ 0.95 = 8.0 quarts; 8.0 quarts – 7.6 quarts = 0.4 quarts)..... 0.4 quartsTotal.......................................................... 8.0 quartsAdd allowance for rejected units (8.0 quarts ÷ 40 bottles)........................ 0.2 quartsStandard quantity per salable bottle of solvent.................................................... 8.2 quarts3.ItemStandardQuantityStandardPriceStandardCost perBottleEchol 8.2 quarts$1.90 perquart $15.58Brief Exercise 9-2 (20 minutes)1. Number of helmets..................................... 35,000Standard kilograms of plastic per helmet.... × 0.6Total standard kilograms allowed................ 21,000Standard cost per kilogram......................... × RM8Total standard cost...................................... RM168,000Actual cost incurred (given)........................ RM171,000Total standard cost (above)......................... 168,000Total material variance—unfavorable.......... RM 3,0002. ActualQuantity ofInput, at Actual PriceActual Quantity of Input, at Standard PriceStandard Quantity Allowed for Output, at Standard Price(AQ × AP) (AQ × SP) (SQ × SP)22,500 kilograms × 21,000 kilograms* ×RM8 per kilogram RM8 per kilogramRM171,000 = RM180,000 = RM168,000   Price Variance, RM9,000 FQuantity Variance, RM12,000 UTotal Variance, RM3,000 U*35,000 helmets × 0.6 kilograms per helmet = 21,000 kilogramsAlternatively, the variances can be computed using the formulas:Materials price variance = AQ (AP – SP)22,500 kilograms (RM7.60 per kilogram* – RM8.00 per kilogram) = RM9,000 F* RM171,000 ÷ 22,500 kilograms = RM7.60 per kilogramMaterials quantity variance = SP (AQ – SQ)RM8 per kilogram (22,500 kilograms – 21,000 kilograms) = RM12,000 UBrief Exercise 9-3 (20 minutes)1. Number of meals prepared............. 4,000Standard direct labor-hours per meal............................................. × 0.25Total direct labor-hours allowed....... 1,000Standard direct labor cost per hour. × $9.75Total standard direct labor cost....... $9,750Actual cost incurred........................ $9,600Total standard direct labor cost (above)......................................... 9,750Total direct labor variance............... $ 150 Favorable2. Actual Hours of Input, at the Actual RateActual Hours ofInput, at theStandard RateStandard Hours Allowed for Output,at the StandardRate(AH×AR) (AH×SR) (SH×SR)960 hours ×$10.00 per hour960 hours ×$9.75 per hour1,000 hours ×$9.75 per hour= $9,600 = $9,360 = $9,750  Rate Variance, $240 UEfficiency Variance, $390 FTotal Variance, $150 FAlternatively, the variances can be computed using the formulas:Labor rate variance = AH(AR – SR)= 960 hours ($10.00 per hour – $9.75 per hour)= $240 ULabor efficiency variance = SR(AH – SH)= $9.75 per hour (960 hours – 1,000 hours)= $390 FBrief Exercise 9-4 (20 minutes)1. Number of items shipped.......................... 120,000Standard direct labor-hours per item........ × 0.02Total direct labor-hours allowed................. 2,400Standard variable overhead cost per hour × $3.25Total standard variable overhead cost....... $ 7,800Actual variable overhead cost incurred..... $7,360Total standard variable overhead cost (above)................................................... 7,800Total variable overhead variance.............. $ 440 Favorable2. Actual Hours of Input, at the Actual RateActual Hours ofInput, at theStandard RateStandard Hours Allowed for Output,at the StandardRate(AH×AR) (AH×SR) (SH×SR)2,300 hours × $3.20 per hour*2,300 hours × $3.25 per hour 2,400 hours × $3.25 per hour = $7,360 = $7,475 = $7,800  Variable OverheadRate Variance, $115FVariable Overhead Efficiency Variance,$325 FTotal Variance, $440 F*$7,360 ÷ 2,300 hours = $3.20 per hourAlternatively, the variances can be computed using the formulas:Variable overhead rate variance:AH(AR – SR) = 2,300 hours ($3.20 per hour – $3.25 per hour)= $115 FVariable overhead efficiency variance:SR(AH – SH) = $3.25 per hour (2,300 hours – 2,400 hours)= $325 FExercise 9-8 (15 minutes)Notice in the solution below that the materials price variance is computed for the entire amount of materials purchased, whereas the materials quantity variance is computed only for the amount of materials used in production.Actual Quantity ofInput, at ActualPriceActual Quantity of Input, at Standard PriceStandard QuantityAllowed forOutput, atStandard Price(AQ × AP) (AQ × SP) (SQ × SP)20,000 pounds ×$2.35 per pound20,000 pounds ×$2.50 per pound13,800 pounds* ×$2.50 per pound= $47,000 = $50,000 = $34,500  Price Variance, $3,000 F14,750 pounds × $2.50 per pound =$36,875Quantity Variance,$2,375 U*3,000 units × 4.6 pounds per unit = 13,800 poundsAlternatively, the variances can be computed using the formulas:Materials price variance = AQ (AP – SP)20,000 pounds ($2.35 per pound – $2.50 per pound) = $3,000 FMaterials quantity variance = SP (AQ – SQ)$2.50 per pound (14,750 pounds – 13,800 pounds) = $2,375 UExercise 9-9 (30 minutes)1. Number of units manufactured..................... 20,000Standard labor time per unit (18 minutes ÷ 60 minutes per hour).......... × 0.3Total standard hours of labor time allowed.... 6,000Standard direct labor rate per hour............... × $12Total standard direct labor cost..................... $72,000Actual direct labor cost................................. $73,600Standard direct labor cost............................. 72,000Total variance—unfavorable.......................... $ 1,6002. Actual Hours of Input, at the Actual RateActual Hours ofInput, at theStandard RateStandard HoursAllowed for Output,at the Standard