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Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
Edition 2ISBN: 978-0077274993Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
Edition 2ISBN: 978-0077274993 Exercise 28
Comprehensive Cost Variance Analysis
Pueblo Service is a fast-growing chain of oil-change stores. The following data are available for last year's services:
•Pueblo Service performed 396,000 oil changes last year. It had budgeted 360,000 oil changes, averaging 10 minutes each.
•Standard variable labor and support costs per oil change were as follows:
•Fixed overhead costs:
•Fixed overhead is applied at the rate of $2 per oil change.
•Actual oil change costs:
Required
a. Prepare a cost variance analysis for each variable cost for last year.
b. Prepare a fixed overhead cost variance analysis like the one in Exhibit 16.13.
Pueblo Service is a fast-growing chain of oil-change stores. The following data are available for last year's services:
•Pueblo Service performed 396,000 oil changes last year. It had budgeted 360,000 oil changes, averaging 10 minutes each.
•Standard variable labor and support costs per oil change were as follows:
•Fixed overhead costs:
•Fixed overhead is applied at the rate of $2 per oil change.
•Actual oil change costs:
Required
a. Prepare a cost variance analysis for each variable cost for last year.
b. Prepare a fixed overhead cost variance analysis like the one in Exhibit 16.13.
Explanation
Verified
Verified
Profit variance:-
Profit variance analy...
Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
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