Prepare an analysis of variances from activity-based costing

Reference no: EM13903136

Variances from activity-based costs. Assume Texas Instruments uses activity-based costing for variable overhead costs. For July, it has three cost drivers with the following standard and actual amounts for 10,000 units of output.

Activity Center	Cost Driver	Standard Rate per Cost Driver Unit	Standard Input for 10,000 Units of Output	Actual Costs	Actual Number of Inputs Used
Quality	Test minutes	$0.50	40,000 test	$20,000	42,000 test
testing			minutes		minutes
Energy	Machine hours	$1.00	40,000 machine	$40,000	38,000 machine
			hours		hours
Indirect labor	Direct labor hours	$1.00	60,000 labor hours	$56,800	61,000 labor hours

Prepare an analysis of the variances like that in Exhibit 10.11.

Text Book: Fundamentals of Cost Accounting 2nd Edition.

Reference no: EM13903136

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