11managerialaccounting-student_财务管理_经管.pptVIP

Standard Costs and Variances Chapter 11 Standard Costs Standards are benchmarks or “norms” formeasuring 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, McDonald’s, hospitals, construction, and manufacturing companies. Standard Costs DirectMaterial Type of Product Cost Amount DirectLabor ManufacturingOverhead Standard Variance Analysis Cycle Setting Standard Costs Engineer Managerial Accountant Setting Direct Materials Standards Standard Priceper Unit Setting Direct Labor Standards Setting Variable Manufacturing Overhead Standards The Standard Cost Card A standard cost card for one unit of product might look like this: 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. A General Model for Variance Analysis Variance Analysis Quantity and Price Standards Quantity and price standards are determined separately for two reasons: 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 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 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