"Gumbo" was added to ABC Company's product line a year ago. Standard and actual materials usage and costs are as follows: Standard Actual (500 units) Price $4.50/kg S8, 400 Quantity 3.0 kg/unit 2, 400 kg The materials price variance for Gumbo is: Question 10Answer a. $2,400 favourable b. $9,300 unfavourable c. $9,300 favourable d. $2,400 unfavourable

"Gumbo" was added to ABC Company's product line a year ago. Standard and actual materials usage and costs are as follows: Standard Actual (500 units) Price $4.50/kg S8, 400 Quantity 3.0 kg/unit 2, 400 kg The materials price variance for Gumbo is: Question 10Answer a. $2,400 favourable b. $9,300 unfavourable c. $9,300 favourable d. $2,400 unfavourable

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 11PB: Use the following standard cost card for 1 gallon of ice cream to answer the questions. Actual...

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Futon Ltd. is a manufacturing company with the following cost information for one of its products: 4.67 Standard price per kilogram of direct materials 1350 Actual quantity of direct materials purchased (in kg) 1950 Standard quantity allowed for actual production (in kg) $ 305.00 Material purchase variance (favourable) What is the actual purchase price per kg? O a) $4.51 O b) $4.44 O c) $4.90 O d) $4.67
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Refer to Cornerstone Exercise 9.9. Required: 1. Calculate the yield ratio based on the standard amounts given. 2. Calculate the standard cost per pound of the yield (rounded to the nearest cent). 3. Calculate the standard yield for actual input of 2,000 pounds of direct materials. 4. Calculate the yield variance. 5. What if the total 2,000 pounds of direct materials put into process resulted in a yield of 825 pizzas? How would that affect the yield variance? Mangia Pizza Company makes frozen pizzas that are sold through grocery stores. Mangia uses two types of direct labor: machine operators and packers. Mangia developed the following standard mix for spreading on premade pizza shells to produce 16 giant-size sausage pizzas. Mangias recent batch (designed to produce 400 pizzas) used 400 direct labor hours. Of the total, 160 were for machine operators, and the remaining 240 hours were for packers. The actual yield was 780 pizzas. Required: 1. Calculate the standard mix (SM) in hours for machine operators and for packers. 2. Calculate the mix variance. 3. Calculate the actual proportion of hours worked by machine operators and by packers. Use these results to explain the direction (favorable or unfavorable) of the mix variance. 4. What if of the total 400 direct labor hours worked, 200 were worked by each type of direct labor? How would that affect the mix variance?
Use the following standard cost card for 1 gallon of ice cream to answer the questions. Actual direct costs incurred to make 50 gallons of ice cream: 275 quarts of cream at $1.05 per quart 832 ounces of sugar at $0.075 per ounce 165 minutes of labor at $37 per hour All material used was bought during the current period. A. Compute the material and labor variances. B. Comment on the results and possible causes of the variances.
Use the following standard cost card for 1 gallon of ice cream to answer the questions. Actual direct costs incurred to make 50 gallons of ice cream: 275 quarts of cream at $1.05 per quart 832 ounces of sugar at $0.075 per ounce 165 minutes of labor at $37 per hour All materials used were bought during the current period. A. Compute the material and labor variances. B. comment on the results and possible causes of the variances.
Chypre, Inc., produces a cologne mist using a solvent mix (water and pure alcohol) and aromatic compounds (the scent base) that it sells to other companies for bottling and sale to consumers. Chypre developed the following standard cost sheet: On May 2, Chypre produced a batch of 1,000 gallons with the following actual results: Required: 1. Calculate the yield ratio. 2. Calculate the standard cost per unit of the yield. (Round to the nearest cent.) 3. Calculate the direct materials yield variance. (Round to the nearest cent.) 4. Calculate the direct materials mix variance. (Round to the nearest cent.)
Ed Co. manufactures two types of O rings, large and small. Both rings use the same material but require different amounts. Standard materials for both are shown. At the beginning of the month, Edve Co. bought 25,000 feet of rubber for $6.875. The company made 3,000 large O rings and 4,000 small O rings. The company used 14,500 feet of rubber. A. What are the direct materials price variance, the direct materials quantity variance, and the total direct materials cost variance? B. If they bought 10,000 connectors costing $310, what would the direct materials price variance be for the connectors? C. If there was an unfavorable direct materials price variance of $125, how much did they pay per toot for the rubber?
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Consider the following data collected for Albo's Rentals: Direct Materials Direct Manufacturing Labor Cost incurred: Actual inputs x Actual prices $210,000 $95,000 Actual inputs x standard prices 214,000 88,000 Standard inputs allowed for actual output x standard prices 220,000 85,000 Required: Compute the price and efficiency variances for direct materials: a.Price $4000 F; Efficiency $6000 F b.Price $10000 U; Efficiency $4000 F c.Price $5000 F; Efficiency $5000 F d.Price $4000 F; Efficiency $10000 U