Iron Inc. manufactures fertilizer by mixing two chemicals, A and B. The standard cost of 1 bag of fertilizer is given as follows: Chemical A 3 lbs @ $5 per lb @ $4 per lb For 2020, the firm produced 1,890 bags of fertilizer. It used 7,000 pounds of Chemical A and 13,000 pounds of Chemical B. The actual cost of both Chemicals A and B was $4 per pound. What is the materials mix variance for 2020? Chemical B 7 lbs Enter your answer without a dollar sign or commas, and round to the nearest dollar (if necessary). A favorable variance should be entered as a positive number (e.g, 100) and an unfavorable variance should be entered as a negative number (e.g. -100).
Iron Inc. manufactures fertilizer by mixing two chemicals, A and B. The standard cost of 1 bag of fertilizer is given as follows: Chemical A 3 lbs @ $5 per lb @ $4 per lb For 2020, the firm produced 1,890 bags of fertilizer. It used 7,000 pounds of Chemical A and 13,000 pounds of Chemical B. The actual cost of both Chemicals A and B was $4 per pound. What is the materials mix variance for 2020? Chemical B 7 lbs Enter your answer without a dollar sign or commas, and round to the nearest dollar (if necessary). A favorable variance should be entered as a positive number (e.g, 100) and an unfavorable variance should be entered as a negative number (e.g. -100).
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Iron Inc. manufactures fertilizer by mixing two
chemicals, A and B. The standard cost of 1 bag
of fertilizer is given as follows:
@ $5 per lb
@ $4 per lb
For 2020, the firm produced 1,890 bags of
fertilizer. It used 7,000 pounds of Chemical A
and 13,000 pounds of Chemical B. The actual
cost of both Chemicals A and B was $4 per
pound. What is the materials mix variance for
2020?
Chemical A 3 lbs
Chemical B 7 lbs
Enter your answer without a dollar sign or
commas, and round to the nearest dollar (if
necessary). A favorable variance should be
entered as a positive number (e.g, 100) and an
unfavorable variance should be entered as a
negative number (e.g. -100).
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