Zachary Fruit Drink Company planned to make 202,000 containers of apple juice. It expected to use two cups of frozen a concentrate to make each container of juice, thus using 404,000 cups of frozen concentrate. The standard price of one ct concentrate is $0.23. Zachary actually paid $115,385 to purchase 412,090 cups of concentrate, which was used to make 2 containers of apple juice. Required: b. Compute the actual price per cup of concentrate. (Round your answer to 2 decimal places.) c. Compute the standard quantity (number of cups of concentrate) required to produce the containers. d. Compute the materials price variance and indicate whether it is favorable (F) or unfavorable (U). (Select "None" if there (i.e., zero variance). Round "Price variance" to 2 decimal places.) e. Compute the materials usage variance and indicate whether it is favorable (F) or unfavorable (U). (Select "None" if ther (i.e., zero variance). Round "Usage variance" to 2 decimal places.) b. Actual price per cup Standard quantity cups C. d. Total price variance e. Total usage variance
Zachary Fruit Drink Company planned to make 202,000 containers of apple juice. It expected to use two cups of frozen a concentrate to make each container of juice, thus using 404,000 cups of frozen concentrate. The standard price of one ct concentrate is $0.23. Zachary actually paid $115,385 to purchase 412,090 cups of concentrate, which was used to make 2 containers of apple juice. Required: b. Compute the actual price per cup of concentrate. (Round your answer to 2 decimal places.) c. Compute the standard quantity (number of cups of concentrate) required to produce the containers. d. Compute the materials price variance and indicate whether it is favorable (F) or unfavorable (U). (Select "None" if there (i.e., zero variance). Round "Price variance" to 2 decimal places.) e. Compute the materials usage variance and indicate whether it is favorable (F) or unfavorable (U). (Select "None" if ther (i.e., zero variance). Round "Usage variance" to 2 decimal places.) b. Actual price per cup Standard quantity cups C. d. Total price variance e. Total usage variance
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter11: Strategic Cost Management
Section: Chapter Questions
Problem 21E: This year, Hassell Company will ship 4,000,000 pounds of chocolates to customers with total...
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