Variance and Finance – 9
Refer to the table below for problems 1-A-E.
Standard Cost Profile
Lab Treatment SU #12
Expected Treatments = 1,000 |
Resource
|
Quantity Variable
|
Quantity Fixed
|
Unit Cost
|
Variable Cost
|
Average Fixed Cost
|
Average Total Cost
|
Labor |
0.80 |
0.80 |
$16.00 |
$12.80 |
$12.80 |
$25.60 |
Supplies |
7.00 |
0 |
1.10 |
7.70 |
0 |
7.70 |
Total
|
$20.50
|
$12.80
|
$33.30
|
Actual Month Cost
Lab Treatment SU #12
Actual Treatments = 1,100 |
Resource
|
Quantity Used
|
Unit Cost
|
Total Cost
|
Labor |
1,600 |
$17.00 |
$27,200 |
Supplies |
7,500 |
1.00 |
7,500 |
Total
|
$34,700
|
Calculate the following variances:
1a. Efficiency Variance – Labor
1b. Efficiency Variance – Supplies
1c. Price Variance – Labor
1d. Price Variance – Supplies
1e. Volume Variance
2a) What is the future value of $10,000 for an interest rate of 16 percent and one annual period of compounding?
2b) What would it be for an annual interest rate of 16 percent and two semiannual periods of compounding?
2c) What would it be for an annual interest rate of 16 percent and four quarterly periods of compounding?
Variance and Finance – 9 Refer to the table below for problems 1-A-E. Standard Cost Profile Lab Treatment SU #12 Expected Treatments = 1,000 Resource Quantity Variable Quantity Fixed Unit Cost Variable Cost Average Fixed Cost Average Total Cost Labor 0.80 0.80 $16.00 $12.80 $12.80 $25.60 Supplies 7.00 0 1.10 7.70 0 7.70 Total $20.50 $12.80 $33.30 Actual Month Cost Lab Treatment SU #12 Actual Treatments = 1,100 Resource Quantity Used Unit Cost Total Cost Labor 1,600 $17.00 $27,200 Supplies 7,500 1.00 7,500 Total $34,700 Calculate the following variances: 1a. Efficiency Variance – Labor 1b. Efficiency Variance – Supplies 1c. Price Variance – Labor 1d. Price Variance – Supplies 1e. Volume Variance 2a) What is the future value of $10,000 for an interest rate of 16 percent and one annual period of compounding? 2b) What would it be for an annual interest rate of 16 percent and two semiannual periods of compounding? 2c) What would it be for an annual interest rate of 16 percent and four quarterly periods of compounding?