Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (2,500 pounds) has the following standards: ETE Standard Quantity Standard Price Whole tomatoes 4,200 Ibs. $0.46 per Ib. Vinegar 230 gal. 2.80 per gal. Corn syrup 20 gal. 10.20 per gal. Salt 92 Ibs. 2.60 per Ib. The actual materials in a batch may vary from the standard due to tomato characteristics. Assume that the actual quantities of materials for batch 08-99 were as follows 4,400 lbs. of tomatoes 221 gal. of vinegar 21 gal. of corn syrup 91 Ibs. of salt a. Determine the standard unit materials cost per pound for a standard batch. If required, round amounts to the nearest cent. Standard Cost Ingredient per Batch Whole tomatoes $ Vinegar Corn syrup Salt Total $ Standard unit materials cost per pound $4 b. Determine the direct materials quantity variance for batch 08-99. If required, round amounts to the nearest cent. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (2,500 pounds) has the following standards: ETE Standard Quantity Standard Price Whole tomatoes 4,200 Ibs. $0.46 per Ib. Vinegar 230 gal. 2.80 per gal. Corn syrup 20 gal. 10.20 per gal. Salt 92 Ibs. 2.60 per Ib. The actual materials in a batch may vary from the standard due to tomato characteristics. Assume that the actual quantities of materials for batch 08-99 were as follows 4,400 lbs. of tomatoes 221 gal. of vinegar 21 gal. of corn syrup 91 Ibs. of salt a. Determine the standard unit materials cost per pound for a standard batch. If required, round amounts to the nearest cent. Standard Cost Ingredient per Batch Whole tomatoes $ Vinegar Corn syrup Salt Total $ Standard unit materials cost per pound $4 b. Determine the direct materials quantity variance for batch 08-99. If required, round amounts to the nearest cent. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Name: Condiments Company uses standards to control its materials costs. Ass
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (2,500 pounds) has the following standards:ETEStandard QuantityStandard PriceWhole tomatoes4,200 Ibs.$0.46 per Ib.Vinegar230 gal.2.80 per gal.Corn syrup

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Waterways Corporation uses very stringent standard costs in evaluating its manufacturing efficiency. These standards are not "ideal" at this point, but the management is working toward that as a goal. At present, the company uses the following standards. Materials Item Per unit Cost Metal 1 lb. 63¢ per lb Plastic 12 oz. $1.00 per Ib. Rubber 4 oz. 88¢ per Ib. Direct labor Item Per unit Cost Labor 15 min. $9.00 per hr. Predetermined overhead rate based on direct labor hours = $424 The January figures for purchasing, production, and labor are: The company purchased 228,200 pounds of raw materials in January at a cost of 79¢ a pound. Production used 228,200 pounds of raw materials to make 115,000 units in January. Direct labor spent 18 minutes on each product at a cost of $8.80 per hour. Overhead costs for January totaled $54,597 variable and $72,000 fixed. Answer the following questions about standard costs. Your answer is partially correct. What is the materials price variance? (Round…
Lukaku's Bakery is a local bakery that operates in Kuwait. Their controller is trying to determine the company's pizzas production cost behavior. January February March April May June Required: A. Use the high-low method to estimate: • The variable costs per unit produced • The total fixed costs ( Pizzas produced (X) 5,000 3,200 4,000 5,200 4,500 3,000 3). • Express the cost behavior in an equation form (1. Total Production Costs (Y) $4,300 $2,950 $3,300 $4,490 $3,450 $2,840 B. Predict the production cost that will be incurred when 5,500 pizzas are prepared ( C. Find the number of prepared pizzas if the total cost of production is $5,090 (
please answer all parts of the question within 30 minutes. make sure all parts are answered else i will give negative ratings.
Nutterco, Inc., produces two types of nut butter: peanut butter and cashew butter. Of the two,peanut butter is the more popular. Cashew butter is a specialty line using smaller jars and fewerjars per case. Data concerning the two products follow: Annual overhead costs are listed below. These costs are classified as fixed or variable with respect to the appropriate activity driver. Required:1. Prepare a traditional segmented income statement, using a unit-level overhead rate based ondirect labor hours. Using this approach, determine whether the cashew butter product lineshould be kept or dropped.2. Prepare an activity-based segmented income statement. Repeat the keep-or-drop analysisusing an ABC approach.
Answer the problem correctly with complete solution.
Dinesh
How muchh is the total cost of production 150 grams of honey if the company uses the least squares method. The correct accountant of Sweet Company recorded these cost of producing honeybee: Days Grams Produced Total Cost Incurred Mon 100 P1,000 Tues 75 600 Wed 25 400 Thurs 150 1,500 Frid 175 1,600 Sat 50 600 Sun 125 1,300
Shanghai Company sells glasses, fine china, and everyday dinnerware. It uses activity-based costing to determine the cost of the shipping and handling activity. The shipping and handling activity has an activity rate of $12 per pound. A box of glasses weighs 2 pounds, a box of fine china weighs 4 pounds, and a box of everyday dinnerware weighs 6 pounds. a Determine the shipping and handling activity cost to be allocated to each unit of product. Glasses Fine China Everyday dinnerware b Determine the total shipping and receiving costs to be allocated to the fine china if 2,300 boxes are shipped.
Chip Company produces three products, Kin, Ike, and Bix. Each product uses the same direct material. Kin uses 4 pounds of the material, Ike uses 3 pounds of the material, and Bix uses 6 pounds of the material. Selling price per unit and variable costs per unit of each product follow. Selling price per unit Variable costs per unit Kin $ 160 96 Contribution margin per pound Ike $ 112 85 Bix $ 210 144 (a) Compute contribution margin per pound of material for each product. (b) If demand is limited, list the three products in the order in which management should produce and meet demand. Product Contribution Margin Order in which management should produce and meet demand: Kin Ike Bix