QS: General Accounting 3.2 Granite Peak Construction mixes concrete using a 3:2:1 ratio ofcement, sand, and gravel. If one batch requires 300 kg total andcement costs $2/kg, sand $1.20/kg, and gravel $0.80/kg, determinethe cost per batch.

Explanation of Ratio: A ratio is a mathematical comparison between two or more related quantities…

Answered: Granite Peak Construction mixes…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 6PA: Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin...

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Granite Peak Construction mixes concrete using a 3:2:1 ratio of cement, sand, and gravel. If one batch requires 300 kg total and cement costs $2/kg, sand $1.20/kg, and gravel $0.80/kg, determine the cost per batch.
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: Standard quantity or hours of direct materials: 7.40 pounds, standard price or rate of direct materials is 2.60 per pound. Standard cost of direct materials is 19.24. Standard quality or hours of direct labor is 0.45. Standard price or rate of direct labor is 8.00 per pound. Standard cost is 3.60. During the most recent month, the following activity was recorded: 12,100 pounds of material were purchased at a cost of 2.50 per pound. All of the material purchased was used to produce 1,500 units of the product. 575 hours of direct labor time were recorded at a total labor cost of 5,750. Compute the materials price variance and the materials quantity variance for the month. Complete the labor rate variance and efficiency variance for the month.
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Two alternatives are under consideration for a tapered fastening pin. Either design will serve the purpose and will involve the same material and manufacturing cost except for the lathe and grinder operations. Design A will require 16 hours of lathe time and 4.5 hours of grinder time per 1,000 units. Design B will require 7 hours of lathe time and 12 hours of grinder time per 1,000 units. The operating cost of the lathe including labor is ₱200 per hour. The operating cost of the grinder including labor is ₱150per hour. Which design should be adopted if 100,000 units are required per year and what is the economic advantage of the best alternative?
Haver Company currently pays an outside supplier $19 per unit for a part for one of its products. Haver is considering two alternative methods of making the part. Method 1 for making the part would require direct materials of $7 per unit, direct labor of $10 per unit, and incremental overhead of $3 per unit. Method 2 for making the part would require direct materials of $7 per unit, direct labor of $4 per unit, and incremental overhead of $7 per unit. Compute the cost per unit for each alternative method of making the part
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Granite Peak Construction mixes concrete using a 3:2:1 ratio of cement, sand, and gravel. If one batch requires 300 kg total and cement costs $2/kg, sand $1.20/kg, and gravel $0.80/kg, determine the cost per batch.