USING CONTROL LIMITS TO DETERMINE WHEN TO INVESTIGATE A VARIANCE Sholar Company set a standard cost for one item at $230,000; allowable deviation is ±$8,000. Actual costs for the past six months are as follows: 11eb6eba_1c09_d219_b349_1d6d5c219a20_SM1590_00 Required: 1. Calculate the variance from standard for each month. Which months should be investigated? 2. What if the company uses a two-part rule for investigating variances? The allowable deviation is the lesser of 3 percent of the standard amount or $8,000. Now which months should be investigated?

Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen

النسخة 1الرقم المعياري الدولي: 978-0538736787

Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen

النسخة 1الرقم المعياري الدولي: 978-0538736787

تمرين 29

USING CONTROL LIMITS TO DETERMINE WHEN TO INVESTIGATE A VARIANCE
Sholar Company set a standard cost for one item at $230,000; allowable deviation is ±$8,000. Actual costs for the past six months are as follows:

Required:
1. Calculate the variance from standard for each month. Which months should be investigated?
2. What if the company uses a two-part rule for investigating variances? The allowable deviation is the lesser of 3 percent of the standard amount or $8,000. Now which months should be investigated?

التوضيح

موثّق

1.
Calculate Variance of standard and a...