1 Casino Pest Control (CPC) provides services to residential households by an application of a special chemical mix that variessomewhat in proportion based on environmental factors. CPC mixes two chemicals, Red-10 and Blue-12, in proportions depending onthe climate and the particular pest problems of the neighborhood. A standard mix calls for a tank of the mixture to combine 60 percentRed-10 and 40 percent Blue-12. That is, a quart of the standard mixture contains 0.6 quarts of Red-10 and 0.4 quarts of Blue-12. Red-10has a standard cost of $7 per quart and Blue-12 has a standard cost of $17.50 per quart. Each quart can treat 100 square yards. CPCexpected to treat 500,000 square yards in May.CPC actually treated 510,000 square yards in May. The company used 2,920 quarts of Red-10 and 2,120 quarts of Blue-12. The actualtotal cost of Red-10 purchased in May was $22,192 and $34,980 for the Blue-12. CPC does not hold any materials inventory.Required:a. Compute the materials price and efficiency variances for the season.b. Compute the materials mix and yield variances for the season.Complete this question by entering your answers in the tabs below.Required ARequired BCompute the materials price and efficiency variances for the season.Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" forunfavorable. If there is no effect, do not select either option.Red-10Blue-12Total$$$Price Variance1,7522,120368Answer is complete but not entirely correct.UFF$Efficiency Variance20,083 F36,208F16,125 F< Required ARequired B > Required:a. Compute the materials price and efficiency variances for the season.b. Compute the materials mix and yield variances for the season.Complete this question by entering your answers in the tabs below.Required A Required BCompute the materials mix and yield variances for the season.Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" forunfavorable. If there is no effect, do not select either option.Red-10Blue-12TotalAnswer is complete but not entirely correct.$$$Mix Variance728 F1,820 U1,092 U$$$Yield Variance168 U(280) ► U448 U< Required ARequired B

Material cost variance is the difference of standard cost of the product and actual cost of the…

Casino Pest Control (CPC) provides services to residential households by an application of a special chemical mix that varies somewhat in proportion based on environmental factors. CPC mixes two chemicals, Red-10 and Blue-12, in proportions depending on the climate and the particular pest problems of the neighborhood. A standard mix calls for a tank of the mixture to combine 60 percent Red-10 and 40 percent Blue-12. That is, a quart of the standard mixture contains 0.6 quarts of Red-10 and 0.4 quarts of Blue-12. Red-10 has a standard cost of $7 per quart and Blue-12 has a standard cost of $17.50 per quart. Each quart can treat 100 square yards. CPC expected to treat 500,000 square yards in May. CPC actually treated 510,000 square yards in May. The company used 2,920 quarts of Red-10 and 2,120 quarts of Blue-12. The actual total cost of Red-10 purchased in May was $22,192 and $34,980 for the Blue-12. CPC does not hold any materials inventory. Required: a. Compute the materials price and efficiency variances for the season. b. Compute the materials mix and yield variances for the season.

Casino Pest Control (CPC) provides services to residential households by an application of a special chemical mix that varies somewhat in proportion based on environmental factors. CPC mixes two chemicals, Red-10 and Blue-12, in proportions depending on the climate and the particular pest problems of the neighborhood. A standard mix calls for a tank of the mixture to combine 60 percent Red-10 and 40 percent Blue-12. That is, a quart of the standard mixture contains 0.6 quarts of Red-10 and 0.4 quarts of Blue-12. Red-10 has a standard cost of $7 per quart and Blue-12 has a standard cost of $17.50 per quart. Each quart can treat 100 square yards. CPC expected to treat 500,000 square yards in May. CPC actually treated 510,000 square yards in May. The company used 2,920 quarts of Red-10 and 2,120 quarts of Blue-12. The actual total cost of Red-10 purchased in May was $22,192 and $34,980 for the Blue-12. CPC does not hold any materials inventory. Required: a. Compute the materials price and efficiency variances for the season. b. Compute the materials mix and yield variances for the season.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter14: Quality And Environmental Cost Management

Section: Chapter Questions

Problem 29E: Two products, Product A and Product B, are associated with the following environmental activities...

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Classify the following environmental activities as prevention costs, detection costs, internal failure costs, or external failure costs. For external failure costs, classify the costs as societal or private. Also, label those activities that are compatible with sustainable development (SD). 1. A company takes actions to reduce the amount of material in its packages. 2. After the activated carbons useful life, a soft-drink producer returns this material used for purifying water for its beverages to the supplier. The supplier reactivates the carbon for a second use in nonfood applications. As a consequence, many tons of material are prevented from entering landfills. 3. An evaporator system is installed to treat wastewater and collect usable solids for other uses. 4. The inks used to print snack packages (for chips) contain heavy metals. 5. Processes are inspected to ensure compliance with environmental standards. 6. Delivery boxes are used five times and then recycled. This prevents 112 million pounds of cardboard from entering landfills and saves 2 million trees per year. 7. Scrubber equipment is installed to ensure that air emissions are less than the level permitted by law. 8. Local residents are incurring medical costs from illnesses caused by air pollution from automobile exhaust pollution. 9. As part of implementing an environmental perspective for the Balanced Scorecard, environmental performance measures are developed. 10. Because of liquid and solid residues being discharged into a local lake, the lake is no longer fit for swimming, fishing, and other recreational activities. 11. To reduce energy consumption, magnetic ballasts are replaced with electronic ballasts, and more efficient light bulbs and lighting sensors are installed. As a result, 2.3 million kilowatt-hours of electricity are saved per year. 12. Due to a legal settlement, a chemicals company must spend 20,000,000 to clean up contaminated soil. 13. A soft-drink company uses the following practice: In all bottling plants, packages damaged during filling are collected and recycled (glass, plastic, and aluminum). 14. Products are inspected to ensure that the gaseous emissions produced during operation follow legal and company guidelines. 15. Operating pollution control equipment incurs costs. 16. An internal audit is conducted to verify that environmental policies are being followed.
The Becton Enterprises (BE) produces a gasoline additive, Charger Power. This product increases engine efficiency and improves gasoline mileage by creating a more complete burn in the combustion process. Careful controls are required during the production process to ensure that the proper mix of input chemicals is achieved and that evaporation is controlled. Loss of output and efficiency may result if the controls are not effective. The standard cost of producing a 500-liter batch of Charger Power is $143. The standard materials mix and related standard cost of each chemical used in a 500-liter batch are: Chemical Std input quantity Std cost per liter Total cost Echol 280 $ 0.200 $ 56.00 Protex 180 0.425 76.50 Benz 330 0.150 49.50 СТ-40 130 0.300 39.00 920 $ 221.00 The quantities of chemicals purchased and used during the current production period are shown in the schedule below. A total of 220 batches of Charger Power were manufactured during the current production period. The…
The Becton Enterprises (BE) produces a gasoline additive, Charger Power. This product increases engine efficiency and improves gasoline mileage by creating a more complete burn in the combustion process. Careful controls are required during the production process to ensure that the proper mix of input chemicals is achieved and that evaporation is controlled. Loss of output and efficiency may result if the controls are not effective. The standard cost of producing a 500-liter batch of Charger Power is $135. The standard materials mix and related standard cost of each chemical used in a 500-liter batch are: Std cost per liter $0.200 0.425 0.150 0.300 Std input Chemical quantity Echol 200 Protex Benz CT-40 100 250 50 600 The quantities of chemicals purchased and used during the current production period are shown in the schedule below. A total of 149 batches of Charger Power were manufactured during the current production period. The controller of BE has determined its costs and chemical…
Hart Labs, Inc. provides mad cow disease testing for both state and federal governmental agricultural agencies. Because the company's customers are governmental agencies, prices are strictly regulated. Therefore, Hart Labs must constantly monitor and control its testing costs. Shown below are the standard costs for a typical test. Direct materials (2 test tubes @ $1.00 per tube) $2.00 Direct labor (1 hour @ $32 per hour) 32.00 Variable overhead (1 hour @ $6.00 per hour) 6.00 Fixed overhead (1 hour @ $13.00 per hour) 13.00 Total standard cost per test $53.00 The lab does not maintain an inventory of test tubes. As a result, the tubes purchased each month are used that month. Actual activity for the month of November 2020, when 1,400 tests were conducted, resulted in the following. Direct materials (2,940 test tubes) $2,646 Direct labor (1,442 hours) 44,702 Variable overhead 8,512 Fixed overhead 16,968 Monthly budgeted fixed overhead is $17,030. Revenues for the month were $93,800, and…
The Becton Enterprises (BE) produces a gasoline additive, Charger Power. This product increases engine efficiency and improves gasoline mileage by creating a more complete burn in the combustion process. Careful controls are required during the production process to ensure that the proper mix of input chemicals is achieved and that evaporation is controlled. Loss of output and efficiency may result if the controls are not effective. The standard cost of producing a 500-liter batch of Charger Power is $135. The standard materials mix and related standard cost of each chemical used in a 500-liter batch are: Chemical Std input quantity Std cost per liter Total cost Echol 200 $ 0.200 $ 40.00 Protex 100 0.425 42.50 Benz 250 0.150 37.50 CT-40 50 0.300 15.00 600 $ 135.00 The quantities of chemicals purchased and used during the current production period are…
The Becton Enterprises (BE) produces a gasoline additive, Charger Power. This product increases engine efficiency and improves gasoline mileage by creating a more complete burn in the combustion process. Careful controls are required during the production process to ensure that the proper mix of input chemicals is achieved and that evaporation is controlled. Loss of output and efficiency may result if the controls are not effective. The standard cost of producing a 500-liter batch of Charger Power is $135. The standard materials mix and related standard cost of each chemical used in a 500-liter batch are: Chemical Std input quantity Std cost per liter Total cost Echol 200 $ 0.200 $ 40.00 Protex 100 0.425 42.50 Benz 250 0.150 37.50 CT-40 50 0.300 15.00 600 $ 135.00 The quantities of chemicals purchased and used during the current production period are shown in the schedule below. A total of 140 batches of Charger Power were manufactured during the current production period. The…
Hart Labs, Inc. provides mad cow disease testing for both state and federal governmental agricultural agencies. Because the company’s customers are governmental agencies, prices are strictly regulated. Therefore, Hart Labs must constantly monitor and control its testing costs. Shown below are the standard costs for a typical test. Direct materials (2 test tubes @ $1.46 per tube) $2.92 Direct labor (1 hour @ $24 per hour) 24.00 Variable overhead (1 hour @ $6 per hour) 6.00 Fixed overhead (1 hour @ $10 per hour) 10.00 Total standard cost per test $42.92 The lab does not maintain an inventory of test tubes. As a result, the tubes purchased each month are used that month. Actual activity for the month of November 2020, when 1,475 tests were conducted, resulted in the following. Direct materials (3,050 test tubes) $4,270 Direct labor (1,550 hours) 35,650 Variable overhead 7,400 Fixed overhead 15,000 Monthly budgeted fixed overhead is…
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