11ManagerialAccountingStudent财务管理经管课件

,Click to edit Master title style,Click to edit Master text styles,Second level,Third level,11-,62,Standard Costs and Variances,Chapter 11,Standard Costs and VariancesCh,Standard Costs,Standards are benchmarks or “norms” formeasuring performance. In managerial accounting,two types of standards are commonly used.,Quantity standards,specify how much of aninput should be used tomake a product orprovide a service.,Price standards,specify how muchshould be paid foreach unit of theinput.,Examples: Firestone, Sears, McDonalds, hospitals,construction, and manufacturing companies.,Standard CostsStandards are be,Standard Costs,DirectMaterial,Deviations from standards deemed significantare brought to the attention of management, apractice known as,management by exception,.,Type of Product Cost,Amount,DirectLabor,ManufacturingOverhead,Standard,Standard CostsDirectMaterialD,Variance Analysis Cycle,Variance Analysis Cycle,Setting Standard Costs,Should we use,ideal standards,that require employees towork at 100 percent peak efficiency?,Engineer,Managerial Accountant,I recommend using,practical standards,that are currently attainable with reasonable and efficient effort.,Setting Standard CostsShould w,Setting Direct Materials Standards,Standard Priceper Unit,Summarized in a Bill of Materials.,Final, deliveredcost of materials,net of discounts.,Standard Quantityper Unit,Setting Direct Materials Stand,Setting Direct Labor Standards,Use time and motion studies foreach labor operation.,Standard Hoursper Unit,Often a singlerate is used that reflectsthe mix of wages earned.,Standard Rateper Hour,Setting Direct Labor Standards,Setting Variable Manufacturing Overhead Standards,The rate is the variable portion of the predetermined overhead rate.,PriceStandard,The quantity is the activity in the allocation base for predetermined overhead.,QuantityStandard,Setting Variable Manufacturing,The Standard Cost Card,A standard cost card for one unit of product might look like this:,The Standard Cost Card A stand,Using Standards in Flexible Budgets,Standard costs per unit for direct materials, direct labor, and variable manufacturing overhead can be used to compute,activity,and,spending,variances.,Spending variances become more useful by breaking them down into quantity and price variances.,Using Standards in Flexible Bu,A General Model for Variance Analysis,Variance Analysis,Price Variance,Difference betweenactual price and standard price,Quantity Variance,Difference betweenactual quantity andstandard quantity,A General Model for Variance A,Quantity and Price Standards,Quantity and price standards are determined separately for two reasons:,The purchasing manager is responsible for raw material purchase prices and the production manager is responsible for the quantity of raw material used.,The buying and using activities occur at different times. Raw material purchases may be held in inventory for a period of time before being used in production.,Quantity and Price StandardsQu,Variance Analysis,Materials price varianceLabor rate varianceVOH rate variance,Materials quantity variance,Labor efficiency variance,VOH efficiency variance,A General Model for Variance Analysis,Quantity Variance,Price Variance,Variance AnalysisMaterials pri,A General Model for Variance Analysis,Quantity Variance(2) (1),Price Variance(3) (2),(1),Standard QuantityAllowed for Actual Output,at Standard Price(SQ SP),(2)Actual Quantityof Input,at Standard Price(AQ SP),(3)Actual Quantityof Input,at Actual Price (AQ AP),Spending Variance(3) (1),A General Model for Variance A,A General Model for Variance Analysis,Actual quantity,is the amount of direct materials, direct labor, and variable manufacturing overhead actually used.,Quantity Variance(2) (1),Price Variance(3) (2),(1),Standard QuantityAllowed for Actual Output,at Standard Price(SQ SP),(2),Actual Quantity,of Input,at Standard Price(AQ SP),(3),Actual Quantity,of Input,at Actual Price (AQ AP),Spending Variance(3) (1),A General Model for Variance A,A General Model for Variance Analysis,Standard quantity,is the standard quantity allowed for the actual output of the period.,Quantity Variance(2) (1),Price Variance(3) (2),(1),Standard Quantity,Allowed for Actual Output,at Standard Price(SQ SP),(2)Actual Quantityof Input,at Standard Price(AQ SP),(3)Actual Quantityof Input,at Actual Price (AQ AP),Spending Variance(3) (1),A General Model for Variance A,A General Model for Variance Analysis,Actual price,is the amount actuallypaid for the input used.,Quantity Variance(2) (1),Price Variance(3) (2),(1),Standard QuantityAllowed for Actual Output,at Standard Price(SQ SP),(2)Actual Quantityof Input,at Standard Price(AQ SP),(3)Actual Quantityof Input,at,Actual Price,(AQ AP),Spending Variance(3) (1),A General Model for Variance A,A General Model for Variance Analysis,Quantity Variance(2) (1),Price Variance(3) (2),(1),Standard QuantityAllowed for Actual Output,at,Standard Price,(SQ SP),(2)Actual Quantityof Input,at,Standard Price,(AQ SP),(3)Actual Quantityof Input,at Actual Price (AQ AP),Spending Variance(3) (1),Standard price,is the amount that shouldhave been paid for the input used.,A General Model for Variance A,Learning Objective 11-1,Compute the direct materials quantity and price variances and explain their significance.,Learning Objective 11-1Compute,Glacier Peak Outfitters has the following direct materials standard for the fiberfill in its mountain parka.,0.1 kg. of fiberfill per parka at $5.00 per kg.,Last month 210 kgs. of fiberfill were purchased and used to make 2,000 parkas. The materials cost a total of $1,029.,Materials Variances An Example,Glacier Peak Outfitters has,200 kgs. 210 kgs. 210 kgs. $5.00 per kg. $5.00 per kg. $4.90 per kg.,= $1,000 = $1,050 = $1,029,Quantity variance$50 unfavorable,Price variance$21 favorable,Materials Variances Summary,Standard Quantity Actual Quantity Actual Quantity Standard Price Standard Price Actual Price,200 kgs.,Materials Variances Summary,200 kgs. 210 kgs. 210 kgs. $5.00 per kg. $5.00 per kg. $4.90 per kg.,= $1,000 = $1,050 = $1,029,Standard Quantity Actual Quantity Actual Quantity Standard Price Standard Price Actual Price,0.1 kg per parka,2,000 parkas = 200 kgs,Quantity variance$50 unfavorable,Price variance$21 favorable,Materials Variances Summary,Materials Variances Summary,200 kgs. 210 kgs. 210 kgs. $5.00 per kg. $5.00 per kg. $4.90 per kg.,= $1,000 = $1,050 = $1,029,Standard Quantity Actual Quantity Actual Quantity Standard Price Standard Price Actual Price,$1,029,210 kgs = $4.90 per kg,Quantity variance$50 unfavorable,Price variance$21 favorable,Materials Variances Summary,Materials Variances:Using the Factored Equations,Materials quantity variance,MQV = (AQ SP) (SQ SP),= SP(AQ SQ),= $5.00/kg (210 kgs (0.1 kg/parka, 2,000 parkas),= $5.00/kg (210 kgs 200 kgs,),= $5.00/kg (10 kgs) = $50 U,Materials price variance,MPV = (AQ AP) (AQ SP),= AQ(AP SP),= 210 kgs ($4.90/kg $5.00/kg),= 210 kgs ( $0.10/kg) = $21 F,Materials Variances:Using the,Materials Price Variance,Materials Quantity Variance,Production Manager,Purchasing Manager,The standard price is used to compute the quantity varianceso that the production manager is not held responsible forthe purchasing managers performance.,Responsibility for Materials Variances,Materials Price VarianceMateri,I am not responsible for this unfavorable materialsquantity variance.,You purchased cheapmaterial, so my peoplehad to use more of it.,Your poor scheduling sometimes requires me to rush order materials at a higher price, causing unfavorable price variances.,Responsibility for Materials Variances,Production Manager,Purchasing Manager,I am not responsible for this,Hanson Inc. has the following direct materials standard to manufacture one Zippy:,1.5 pounds per Zippy at $4.00 per pound,Last week, 1,700 pounds of materials were purchased and used to make 1,000 Zippies. The materials cost a total of $6,630.,Zippy,Quick Check,Hanson Inc. has the followin,How many pounds of materials should Hanson have used to make 1,000 Zippies?,a.1,700 pounds.,b.1,500 pounds.,c.1,200 pounds.,d.1,000 pounds.,Zippy,Quick Check,How many pounds of material,Hansons,materials,quantity variance (MQV)for the week was:,a.$170 unfavorable.,b.$170 favorable.,c.$800 unfavorable.,d.$800 favorable.,Zippy,Quick Check,Hansons materials quantity,Hansons,materials,price variance (MPV)for the week was:,a.$170 unfavorable.,b.$170 favorable.,c.$800 unfavorable.,d.$800 favorable.,Zippy,Quick Check,Hansons materials price va,1,500 lbs. 1,700 lbs. 1,700 lbs. $4.00 per lb. $4.00 per lb. $3.90 per lb.,= $6,000 = $ 6,800 = $6,630,Quantity variance$800 unfavorable,Price variance$170 favorable,Zippy,Quick Check,Standard Quantity Actual Quantity Actual Quantity Standard Price Standard Price Actual Price,1,500 lbs.,Zippy,Quick Check,Recall that the standard quantity for 1,000 Zippiesis 1,000 1.5 pounds per Zippy = 1,500 pounds.,1,500 lbs. 1,700 lbs. 1,700 lbs. $4.00 per lb. $4.00 per lb. $3.90 per lb.,= $6,000 = $ 6,800 = $6,630,Quantity variance$800 unfavorable,Price variance$170 favorable,Standard Quantity Actual Quantity Actual Quantity Standard Price Standard Price Actual Price,ZippyQuick Check Recall that,Learning Objective 11-2,Compute the direct labor efficiency and rate variances and explaintheir significance.,Learning Objective 11-2Compute,Glacier Peak Outfitters has the following direct labor standard for its mountain parka.,1.2 standard hours per parka at $10.00 per hour,Last month, employees actually worked 2,500 hours at a total labor cost of $26,250 to make 2,000 parkas.,Labor Variances An Example,Glacier Peak Outfitters has,Efficiency variance$1,000 unfavorable,Rate variance$1,250 unfavorable,Standard Hours Actual Hours Actual Hours Standard Rate Standard Rate Actual Rate,Labor Variances Summary,2,400 hours 2,500 hours 2,500 hours $10.00 per hour $10.00 per hour $10.50 per hour,= $24,000 = $25,000 = $26,250,Efficiency variance$1,000 unf,2,400 hours 2,500 hours 2,500 hours $10.00 per hour $10.00 per hour $10.50 per hour,= $24,000 = $25,000 = $26,250,Labor Variances Summary,1.2 hours per parka, 2,000 parkas = 2,400 hours,Efficiency variance$1,000 unfavorable,Rate variance$1,250 unfavorable,Standard Hours Actual Hours Actual Hours Standard Rate Standard Rate Actual Rate,2,400 hours,2,400 hours 2,500 hours 2,500 hours $10.00 per hour $10.00 per hour $10.50 per hour,= $24,000 = $25,000 = $26,250,Labor Variances Summary,$26,250, 2,500 hours = $10.50 per hour,Efficiency variance$1,000 unfavorable,Rate variance$1,250 unfavorable,Standard Hours Actual Hours Actual Hours Standard Rate Standard Rate Actual Rate,2,400 hours,Labor Variances: Using the Factored Equations,Labor efficiency variance,LEV = (AH SR) (SH SR),= SR (AH SH),= $10.00 per hour (2,500 hours 2,400 hours),= $10.00 per hour (100 hours),= $1,000 unfavorable,Labor rate variance,LRV = (AH AR) (AH SR),= AH (AR SR),= 2,500 hours ($10.50 per hour $10.00 per hour),= 2,500 hours ($0.50 per hour),= $1,250 unfavorable,Labor Variances: Using the Fac,Responsibility for Labor Variances,Production Manager,Production managers areusually held accountablefor labor variancesbecause they caninfluence the:,Mix of skill levelsassigned to work tasks.,Level of employee motivation.,Quality of production supervision.,Quality of training provided to employees.,Responsibility for Labor Varia,I am not responsible for the unfavorable laborefficiency variance!,You purchased cheapmaterial, so it took moretime to process it.,I think it took more time to process the materials because the Maintenance Department has poorly maintained your equipment.,Responsibility for Labor Variances,I am not responsible for the,Hanson Inc. has the following direct laborstandard to manufacture one Zippy:,1.5 standard hours per Zippy at$12.00 per direct labor hour,Last week, 1,550 direct labor hours wereworked at a total labor cost of $18,910to make 1,000 Zippies.,Zippy,Quick Check,Hanson Inc. has the followin,Hansons labor efficiency variance (LEV)for the week was:,a. $590 unfavorable.,b. $590 favorable.,c. $600 unfavorable.,d. $600 favorable.,Zippy,Quick Check,Hansons labor efficiency v,Hansons labor rate variance (LRV) for the week was:,a. $310 unfavorable.,b. $310 favorable.,c. $300 unfavorable.,d. $300 favorable.,Zippy,Quick Check,Hansons labor rate varianc,Efficiency variance$600 unfavorable,Rate variance$310 unfavorable,1,500 hours 1,550 hours 1,550 hours $12.00 per hour $12.00 per hour $12.20 per hour,= $18,000 = $18,600 = $18,910,Zippy,Quick Check,Standard Hours Actual Hours Actual Hours Standard Rate Standard Rate Actual Rate,Efficiency variance$600 unfav,Learning Objective 11-3,Compute the variable manufacturing overhead efficiency and rate variances and explain their significance.,Learning Objective 11-3Compute,Glacier Peak Outfitters has the following direct variable manufacturing overhead labor standard for its mountain parka.,1.2 standard hours per parka at $4.00 per hour,Last month, employees actually worked 2,500 hours to make 2,000 parkas. Actual variable manufacturing overhead for the month was $10,500.,Variable Manufacturing Overhead Variances An Example,Glacier Peak Outfitters has,2,400 hours 2,500 hours 2,500 hours $4.00 per hour $4.00 per hour $4.20 per hour,= $9,600 = $10,000 = $10,500,Efficiency variance$400 unfavorable,Rate variance$500 unfavorable,Variable Manufacturing Overhead Variances Summary,Standard Hours Actual Hours Actual Hours Standard Rate Standard Rate Actual Rate,2,400 hours,2,400 hours 2,500 hours 2,500 hours $4.00 per hour $4.00 per hour $4.20 per hour,= $9,600 = $10,000 = $10,500,Variable Manufacturing Overhead Variances Summary,1.2 hours per parka, 2,000 parkas = 2,400 hours,Efficiency variance$400 unfavorable,Rate variance$500 unfavorable,Standard Hours Actual Hours Actual Hours Standard Rate Standard Rate Actual Rate,2,400 hours,2,400 hours 2,500 hours 2,500 hours $4.00 per hour $4.00 per hour $4.20 per hour,= $9,600 = $10,000 = $10,500,Variable Manufacturing Overhead Variances Summary,$10,500, 2,500 hours = $4.20 per hour,Efficiency variance$400 unfavorable,Rate variance$500 unfavorable,Standard Hours Actual Hours Actual Hours Standard Rate Standard Rate Actual Rate,2,400 hours,Variable Manufacturing Overhead Variances: Using Factored Equations,Variable manufacturing overhead efficiency variance,VMEV = (AH SR) (SH SR),= SR (AH SH),= $4.00 per hour (2,500 hours 2,400 hours),= $4.00 per hour (100 hours),= $400 unfavorable,Variable manufacturing overhead rate variance,VMRV = (AH AR) (AH SR),= AH (AR SR),= 2,500 hours ($4.20 per hour $4.00 per hour),= 2,500 hours ($0.20 per hour),= $500 unfavorable,Variable Manufacturing Overhea,Hanson Inc. has the following variablemanufacturing overhead standard tomanufacture one Zippy:,1.5 standard hours per Zippy at$3.00 per direct labor hour,Last week, 1,550 hours were worked to make1,000 Zippies, and $5,115 was spent forvariable manufacturing overhead.,Zippy,Quick Check,Hanson Inc. has the followin,Hansons efficiency variance (VMEV) for variable manufacturing overhead for the week was:,a.$435 unfavorable.,b.$435 favorable.,c.$150 unfavorable.,d.$150 favorable.,Zippy,Quick Check,Hansons efficiency varianc,Hansons rate variance (VMRV) for variable manufacturing overhead for the week was:,a.$465 unfavorable.,b.$400 favorable.,c.$335 unfavorable.,d.$300 favorable.,Zippy,Quick Check,Hansons rate variance (VMR,Efficiency variance$150 unfavorable,Rate variance$465 unfavorable,1,500 hours 1,550 hours 1,550 hours $3.00 per hour