11ManagerialAccountingStudent财务管理经管课件.ppt

1、PowerPoint Authors:Susan Coomer Galbreath,Ph.D.,CPACharles W.Caldwell,D.B.A.,CMAJon A.Booker,Ph.D.,CPA,CIACynthia J.Rooney,Ph.D.,CPACopyright 2014 by The McGraw-Hill Companies,Inc.All rights reserved.Standard Costs and VariancesChapter 1111-2Standard CostsStandards are benchmarks or“norms”formeasuri

2、ng performance.In managerial accounting,two types of standards are commonly used.Quantity standardsspecify how much of aninput should be used tomake a product orprovide a service.Price standardsspecify how muchshould be paid foreach unit of theinput.Examples:Firestone,Sears,McDonalds,hospitals,const

3、ruction,and manufacturing companies.11-3Standard CostsDirectMaterialDeviations from standards deemed significantare brought to the attention of management,apractice known as management by exception.Type of Product CostAmountDirectLaborManufacturingOverheadStandard11-4Variance Analysis Cycle11-5Setti

4、ng Standard CostsShould we useideal standards that require employees towork at 100 percent peak efficiency?EngineerManagerial Accountant I recommend using practical standards that are currently attainable with reasonable and efficient effort.11-6Setting Direct Materials Standards Summarized in a Bil

5、l of Materials.Final,deliveredcost of materials,net of discounts.11-7Setting Direct Labor Standards Use time and motion studies foreach labor operation.Often a singlerate is used that reflectsthe mix of wages earned.11-8Setting Variable Manufacturing Overhead Standards The rate is the variable porti

6、on of the predetermined overhead rate.PriceStandardThe quantity is the activity in the allocation base for predetermined overhead.11-9The Standard Cost Card A standard cost card for one unit of product might look like this:AA x BStandardStandardStandardQuantityPriceCostInputsor Hoursor Rateper UnitD

7、irect materials 3.0 lbs.4.00$per lb.12.00$Direct labor 2.5 hours14.00 per hour35.00 Variable mfg.overhead 2.5 hours3.00 per hour7.50 Total standard unit cost54.50$B11-10Using Standards in Flexible BudgetsStandard costs per unit for direct materials,direct labor,and variable manufacturing overhead ca

8、n be used to compute activity and spending variances.11-11A General Model for Variance AnalysisVariance AnalysisPrice VarianceQuantity Variance11-12Quantity and Price Standards The purchasing manager is responsible for raw material purchase prices and the production manager is responsible for the qu

9、antity 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.11-13Variance AnalysisA General Model for Variance AnalysisQuantity VariancePrice Variance11-14A General Model for

10、 Variance AnalysisQuantity 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)11-15A General Model for Variance AnalysisActu

11、al 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 Quantityof Input,at Standard Price(AQ SP)(3)Actual Quantityof Input,

12、at Actual Price(AQ AP)Spending Variance(3)(1)11-16A 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 QuantityAllowed for Actual Output,at Standard Price(SQ SP)(2)Actual Qu

13、antityof Input,at Standard Price(AQ SP)(3)Actual Quantityof Input,at Actual Price(AQ AP)Spending Variance(3)(1)11-17A 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 Outpu

14、t,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)11-18A General Model for Variance Analysis Quantity Variance(2)(1)Price Variance(3)(2)(1)Standard QuantityAllowed for Actual Output,at Standard Price(S

15、Q 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.11-19Learning Objective 11-1Compute the direct materials quantity and price variances and explain

16、their significance.11-20 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

17、 Variances An Example11-21 200 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 unfavorablePrice variance$21 favorableMaterials Variances SummaryStandard Quantity Actual Quantity Actual Quantity Standard Price Standard Price Actual Price11-22Mat

18、erials 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 Price0.1 kg per parka 2,000 parkas=200 kgsQuantity variance$50 unfavorablePrice variance$21 favorable

19、11-23Materials 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 kgQuantity variance$50 unfavorablePrice variance$21 favorable11

20、-24Materials Variances:Using the Factored EquationsMaterials quantity varianceMQV=(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 UMaterials price varianceMPV=(AQ AP)(AQ SP)=AQ(AP SP)=210 kgs($4.90/kg$5.00/kg)=210 kgs($0.10/kg)=$21

21、 F11-25Materials Price VarianceMaterials Quantity VarianceProduction ManagerPurchasing ManagerThe standard price is used to compute the quantity varianceso that the production manager is not held responsible forthe purchasing managers performance.Responsibility for Materials Variances11-26I am not r

22、esponsible 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 VariancesProduction ManagerPu

23、rchasing Manager11-27 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.ZippyQuick Check 11-28 How many pounds of

24、 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.ZippyQuick Check 11-29 Hansons materials quantity variance(MQV)for the week was:a.$170 unfavorable.b.$170 favorable.c.$800 unfavorable.d.$800 favorable.ZippyQuick Check 11-30 Hansons

25、materials price variance(MPV)for the week was:a.$170 unfavorable.b.$170 favorable.c.$800 unfavorable.d.$800 favorable.ZippyQuick Check 11-31 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 unfavorablePrice variance$170 favorableZippy

26、Quick Check Standard Quantity Actual Quantity Actual Quantity Standard Price Standard Price Actual Price11-32ZippyQuick 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

27、,800 =$6,630 Quantity variance$800 unfavorablePrice variance$170 favorableStandard Quantity Actual Quantity Actual Quantity Standard Price Standard Price Actual Price11-33Learning Objective 11-2Compute the direct labor efficiency and rate variances and explaintheir significance.11-34 Glacier Peak Ou

28、tfitters 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 Example11-35Efficiency variance$1,000 unfavorableRate varian

29、ce$1,250 unfavorable Standard Hours Actual Hours Actual Hours Standard Rate Standard Rate Actual RateLabor 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 11-36 2,400 hours 2,500 hours 2,500 hours$10.00 per hour$10.00 per

30、hour$10.50 per hour =$24,000 =$25,000 =$26,250 Labor Variances Summary1.2 hours per parka 2,000 parkas=2,400 hoursEfficiency variance$1,000 unfavorableRate variance$1,250 unfavorable Standard Hours Actual Hours Actual Hours Standard Rate Standard Rate Actual Rate11-37 2,400 hours 2,500 hours 2,500 h

31、ours$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 hourEfficiency variance$1,000 unfavorableRate variance$1,250 unfavorable Standard Hours Actual Hours Actual Hours Standard Rate Standard Rate Actual Rate11-38Labor Varia

32、nces:Using the Factored EquationsLabor efficiency varianceLEV=(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 unfavorableLabor rate varianceLRV=(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

33、unfavorable11-39Responsibility for Labor VariancesProduction ManagerProduction 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

34、 employees.11-40I 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 Variance

35、s11-41 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.ZippyQuick Check 11-42 Hansons labor efficiency variance(LE

36、V)for the week was:a.$590 unfavorable.b.$590 favorable.c.$600 unfavorable.d.$600 favorable.ZippyQuick Check 11-43 Hansons labor rate variance(LRV)for the week was:a.$310 unfavorable.b.$310 favorable.c.$300 unfavorable.d.$300 favorable.ZippyQuick Check 11-44Efficiency variance$600 unfavorableRate var

37、iance$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 ZippyQuick Check Standard Hours Actual Hours Actual Hours Standard Rate Standard Rate Actual Rate11-45Learning Objective 11-3Compute the variable manufacturing overhead e

38、fficiency and rate variances and explain their significance.11-46 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

39、.Actual variable manufacturing overhead for the month was$10,500.Variable Manufacturing Overhead Variances An Example11-47 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 unfavorableRate variance$500 unfavorableVariable

40、Manufacturing Overhead Variances Summary Standard Hours Actual Hours Actual Hours Standard Rate Standard Rate Actual Rate11-48 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 Summary1.2 hours per parka

41、2,000 parkas=2,400 hoursEfficiency variance$400 unfavorableRate variance$500 unfavorable Standard Hours Actual Hours Actual Hours Standard Rate Standard Rate Actual Rate11-49 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 Manufacturin

42、g Overhead Variances Summary$10,500 2,500 hours=$4.20 per hourEfficiency variance$400 unfavorableRate variance$500 unfavorable Standard Hours Actual Hours Actual Hours Standard Rate Standard Rate Actual Rate11-50Variable Manufacturing Overhead Variances:Using Factored EquationsVariable manufacturing

43、 overhead efficiency varianceVMEV=(AH SR)(SH SR)=SR(AH SH)=$4.00 per hour(2,500 hours 2,400 hours)=$4.00 per hour(100 hours)=$400 unfavorableVariable manufacturing overhead rate varianceVMRV =(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 unfavora

44、ble11-51 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.ZippyQuick Check 11-52 Hanson

45、s efficiency variance(VMEV)for variable manufacturing overhead for the week was:a.$435 unfavorable.b.$435 favorable.c.$150 unfavorable.d.$150 favorable.ZippyQuick Check 11-53 Hansons rate variance(VMRV)for variable manufacturing overhead for the week was:a.$465 unfavorable.b.$400 favorable.c.$335 un

46、favorable.d.$300 favorable.ZippyQuick Check 11-54Efficiency variance$150 unfavorableRate variance$465 unfavorable 1,500 hours 1,550 hours 1,550 hours$3.00 per hour$3.00 per hour$3.30 per hour =$4,500 =$4,650 =$5,115 ZippyQuick Check Standard Hours Actual Hours Actual Hours Standard Rate Standard Rat

47、e Actual Rate11-55Materials VariancesAn Important SubtletyThe quantity variance is computed only on the quantity used.The price variance is computed on the entire quantity purchased.11-56 Glacier Peak Outfitters has the following direct materials standard for the fiberfill in its mountain parka.0.1

48、kg.of fiberfill per parka at$5.00 per kg.Last month 210 kgs.of fiberfill were purchased at a cost of$1,029.Glacier used 200 kgs.to make 2,000 parkas.Materials VariancesAn Important Subtlety11-57 200 kgs.200 kgs.$5.00 per kg.$5.00 per kg.=$1,000 =$1,000 Quantity variance$0 Standard Quantity Actual Qu

49、antity Standard Price Standard Price Materials VariancesAn Important Subtlety11-58 210 kgs.210 kgs.$5.00 per kg.$4.90 per kg.=$1,050 =$1,029 Price variance$21 favorable Actual Quantity Actual Quantity Standard Price Actual PriceMaterials VariancesAn Important Subtlety11-59Variance Analysis and Manag

50、ement by ExceptionHow do I knowwhich variances to investigate?Larger variances,in dollar amount or as a percentage of the standard,are investigated first.11-60Advantages of Standard CostsManagement byexceptionAdvantagesPromotes economy and efficiencySimplifiedbookkeepingEnhances responsibilityaccoun