Gibson Fruit Drink Company planned to make 203,000 containers of apple juice. It expected to use two cups of frozen apple concentrate to make each container of juice, thus using 406,000 cups of frozen concentrate. The standard price of one cup of apple concentrate is $0.24. Gibson actually paid $115,954 to purchase 414,120 cups of concentrate, which was used to make 204,000 containers of apple juice. Required: b. Compute the actual price per cup of concentrate. Note: 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). Note: Select "None" if there is no effect (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). Note: Select "None" if there is no effect (i.e., zero variance). Round "Usage variance" to 2 decimal places. b. Actual price c. Standard quantity $ 0.28 per cup 408,000 cups d. Materials price variance $ 16,564.00 U e. Materials usage variance U

Gibson Fruit Drink Company planned to make 203,000 containers of apple juice. It expected to use two cups of frozen apple concentrate to make each container of juice, thus using 406,000 cups of frozen concentrate. The standard price of one cup of apple concentrate is $0.24. Gibson actually paid $115,954 to purchase 414,120 cups of concentrate, which was used to make 204,000 containers of apple juice. Required: b. Compute the actual price per cup of concentrate. Note: 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). Note: Select "None" if there is no effect (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). Note: Select "None" if there is no effect (i.e., zero variance). Round "Usage variance" to 2 decimal places. b. Actual price c. Standard quantity $ 0.28 per cup 408,000 cups d. Materials price variance $ 16,564.00 U e. Materials usage variance U

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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