Question

In a manufacturing business, the production of products is sanding and polishing through two departments then...

In a manufacturing business, the production of products is sanding and polishing through two departments then completed. Standards for the activities of workers working in both departments and

results are shown in the following table

Departments      Standard Time                  Standard Charge            Actual Hour             Actual Fee

Sanding               6,000 dis                               15 TL/dis                         6,500 dis                  14 TL/dis

Polishing             4,500 dis                                14 TL/dis                         4,200 dis                  14.50 TL/dis

Requested: Calculate the cost and yield deviation for both departments using the information in the table.

Homework Answers

Answer #1

Solution:

a)Calculation of cost deviation(Variance)

i)Sanding Department

Cost deviation=Standard cost-Actual Cost

=(6000*15)-(6500*14)

=90,000-91000

=1000 TL(Unfavourable/Debit)

ii)Polishing Department

Cost deviation=(4500*14)-(4,200*14.50)

=63000-60900

=2100 TL(Favoorable/Credit)

b)Calculation of Yield deviation(Variance)

i)Sanding Department

Yield Deviation=(Standard hour-Actual hour)*Standard cost

=(6000-4500)*15

=22500 TL(Favourable)

ii)Polishing Department

Yield Deviation=(4500-4200)*14

=4200 TL(Favourable)

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