Luke Chou, the president of Digitech Computer Services, needs your help. He wonders about

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ACC202 Week 4 E15-1 E15-2 E15-4 E15-5 P15-18 P15-19 P15-20

E15-1 Indicate whether each of the following variances is favorable or unfavorable. The first one has been done as an example.

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E15-2 Compute variances for the following items and indicate whether each variance is favorable (F) or unfavorable (U).

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E15-4 Use the information provided in Exercise 8-3A.
a. Determine the sales and variable cost volume variances.
b. Classify the variances as favorable (F) or unfavorable (U).

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E15-5 Use the standard price and cost data provided in Exercise 8-3A. Assume that the actual sales
price is $7.65 per unit and that the actual variable cost is $4.25 per unit. The actual fixed manufacturing
cost is $2,500, and the actual selling and administrative costs are $1,025.

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P15-18Todhunter Publications established the following standard price and costs for a hardcover picture book that the company produces.

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P15-19 Use the standard price and cost data supplied in Problem 8-18A. Assume that Todhunter actually produced and sold 31,000 books. The actual sales price and costs incurred follow.

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P15-20 Luke Chou, the president of Digitech Computer Services, needs your help. He wonders about the potential effects on the firm’s net income if he changes the service rate that the firm charges its customers. The following basic data pertain to fiscal year 2012.

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