Page 302 - BA2 Integrated Workbook STUDENT 2018

Fundamentals of Management Accounting

6.4 The amount budgeted to be paid to suppliers in September is $289,000.
$
July ($250,000 × 5%) 12,500

August ($300,000 × 70%) 210,000
September ($280,000 × 25% × 95%) 66,500
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289,000

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CHAPTER 7 – STANDARD COSTING AND VARIANCE ANALYSIS

7.1 The sales price variance for the period was $69,000 adverse.

$
46,000 units should sell for (× $34) 1,564,000
But did sell for 1,495,000

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Sales price variance 69,000 adverse
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7.2 The sales volume contribution variance for the period was $14,000 favourable.
Units
Budgeted sales volume 45,000

Actual sales volume 46,000
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Sales volume variance in units 1,000 favourable
× standard contribution per unit ($34 – $20) $14

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Sales volume contribution variance $14,000 favourable
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7.3 B
Wages paid $14,500
Rate variance $1,300 adverse

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Standard rate for hours worked $13,200
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Standard rate per hour = $13,200/1,000 = $13.20.

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