Magno Cereal Corporation uses a standard cost system to collect costs related to the production of its "crunchy pickle" cereal. The materials standard for each batch of cereal produced is 1.4 pounds of pickles at a standard cost of $3.00 per pound. During the month of August, Magno purchased 78,000 pounds of pickles at a total cost of $253,500. Magno used all of these pickles to produce 60,000 batches of cereal. What is Magno's materials quantity variance for the month of August?

Magno Cereal Corporation uses a standard cost system to collect costs related to the production of its "crunchy pickle" cereal. The materials standard for each batch of cereal produced is 1.4 pounds of pickles at a standard cost of $3.00 per pound. During the month of August, Magno purchased 78,000 pounds of pickles at a total cost of $253,500. Magno used all of these pickles to produce 60,000 batches of cereal. What is Magno's materials quantity variance for the month of August?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 35P: Orman Company produces neon-colored covers for tablets (e.g., iPads). For last year, Orman reported...

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Magno Cereal Corporation uses a standard cost system for its "crunchy pickle" cereal. The materials standard for each batch of cereal produced is 1.4 pounds of pickles at a standard cost of $3.00 per pound. During the month of August, Magno purchased 78,000 pounds of pickles at a total cost of $253,500. Magno used all of these pickles to produce 60,000 batches of cereal. What is Magno's materials quantity variance for August? $1,500 Unfavorable $18,000 Favorable $19,500 Unfavorable $54,000 Unfavorable a. b. C. d.
Olympic Foods Company uses a standard cost system to collect costs related to the production of its tomato flavored cooking sauce. The tomato (materials) standards for each jar of sauce produced are 0.8 kg of tomato at a standard cost of $2.30 per kg. During the month of June, Olympic purchased 75,000 kgs of tomato at a total cost of $171,000. Olympic used 64,000 of these kgs to produce 71,500 jars of tomato sauce. What is Olympic's materials price variance for the month of June? Use the information given in Question No. 1 to calculate Olympic's materials quantity variance for the month of June.
Almond Treats manufactures various types of cereals that feature almonds. Acme Cereal Company has approached Almond Treats with a proposal to sell the company its top selling cereal at a price of $24,919 for 20,000 pounds. The costs shown are associated with production of 20,000 pounds of almond cereal: Almond Treats cost data Costs Amounts Direct material $14,698 Direct labor 3,089 Manufacturing overhead 8,099 A) The manufacturing overhead consists of $2,738 of variable costs with the balance being allocated to fixed costs. If Almond Treats buys the cereal, what is the effect on profit? If the effect is negative, use a dash - not parentheses ( ).
Tiago's Electronics uses a standard costing system. Tiago's Electronics purchased 28,000 feet of direct material at the cost of $5 per foot. The standard cost is $5.30 per foot, and it takes 12 feet of direct material to make one unit of product. This month, 3,000 units were produced, and all 28,000 feet of material were used in production. A. What is the journal entry to record the purchase of direct materials on the account? B. What is the journal entry to record the use of direct materials in production? Milford Inc. has a debt-to-equity ratio of 0.80. It has total shareholders' equity of $2.5 million and current liabilities of $750,000. How much long-term debt is outstanding? A. $2,375,000 B. $2,100,000 C. $3,125,000 D. $1,250,000
Almond Treats manufactures various types of cereals that feature almonds. Acme Cereal Company has approached Almond Treats with a proposal to sell the company its top selling cereal at a price of $20,304 for 20,000 pounds. The costs shown are associated with production of 20,000 pounds of almond cereal: Almond Treats cost data Costs Direct material Direct labor Manufacturing overhead Amounts $13,788 3,690 8,000 The manufacturing overhead consists of $2,505 of variable costs with the balance being allocated to fixed costs. If Almond Treats buys the cereal, what is the effect on profit? If the effect is negative, use a dash - not parentheses ().
Cowboy Ice Cream Company (CIC) produces ice cream bars that it markets through a variety of grocery stores. It makes the ice cream bars in batches of 2,000 units. CIC produced 36,000 ice cream bars during the prior accounting period. The cost of producing the ice cream bars is shown below. Materials cost ($29 per unit x 36,000) Labor cost ($26 per unit x 36,000) Manufacturing supplies ($9 x 36,000) Batch-level costs (18 batches at $6,000 per batch) Product-level costs $1,044,000 936,000 324,000 108,000 300,000 370,000 Facility-level costs Total costs $3,082,000 Cost per unit = $3,082,000 + 36, 000 = $85.61 Required a. OnCue has offered to buy a batch of 500 ice cream bars for $68 each. CIC's normal selling price is $93 per unit. Calculate the relevant cost per unit for the special order. Based on the preceding quantitative data, should CIC accept the special order? b. OnCue offered to buy a batch of 2,000 ice cream bars for $68 per unit, calculate the relevant cost per unit for the…
Zippy Inc. manufactures a fuel additive, Surge, which has a stable selling price of $44 per drum. The company has been producing and selling 80,000 drums per month. In connection with your examination of Zippy's financial statements for the year ended September 30, management has asked you to review some computations made by Zippy's cost accountant. Your working papers disclose the following about the company's operations: Standard costs per drum of product manufactured: Materials: 8 gallons of chemicals @ $2. $16 1 empty drum. $17 Direct labor-1 hour. $10 Factory Overhead. $ 6 Costs and expenses during September: Chemicals: 645,000 gallons purchased at a cost of $1,140,000; 600,000 gallons used. Empty drums: 94,000 purchased at a cost of $94,000; 80,000 drums used. Direct labor: 81,000 hours worked at a cost of $816,480. Factory overhead: $768,000. REQUIRED: Calculate the following for September, using the formulas in Determination of Variances on pages 421–422 and 424 (Round unit…
Hardev
Almond Treats manufactures various types of cereals that feature almonds. Acme Cereal Company has approached Almond Treats with a proposal to sell the company its top selling cereal at a price of $22,000 for 20,000 pounds. The costs shown are associated with production of 20,000 pounds of almond cereal: Almond Treats cost data Costs Amounts Direct material $13,000 Direct labor 5,000 Manufacturing overhead 7,000 A) The manufacturing overhead consists of $2,000 of variable costs with the balance being allocated to fixed costs. What are the total relevant costs? B) The manufacturing overhead consists of $2,000 of variable costs with the balance being allocated to fixed costs. If Almond Treats buys the cereal, what is the effect on profit? If the effect is negative, use a dash - not parentheses ( ).
Dalton Quilting Company makes blankets that it markets through a variety of department stores. It makes the blankets in batches of 1,400 units. Dalton made 24,000 blankets during the prior accounting period. The cost of producing the blankets is summarized here. Materials cost ($10 per unit x 24,000) Labor cost ($9 per unit x 24,000) Manufacturing supplies ($1.50 × 24,000) Batch-level costs (20 batches at $4,200 per batch) Product-level costs. Facility-level costs Total costs Cost per unit = $846,000 ÷ 24,000 = $35.25 $ 240,000 216,000 36,000 84,000 96,000 174,000 $ 846,000 Required a. Sunny Motels has offered to buy a batch of 700 blankets for $25 each. Dalton's normal selling price is $46 per unit. Calculate the relevant cost per unit for the special order. Based on the preceding quantitative data, should Dalton accept the special order? a. Cost per unit a. Should Dalton accept the special order? b. Cost per unit b. Should Dalton accept the special order? b. Sunny offered to buy a…
Almond Treats manufactures various types of cereals that feature almonds. Acme Cereal Company has approached Almond Treats with a proposal to sell the company its top selling cereal at a price of $22,200 for 20,000 pounds. The costs shown are associated with production of 20,000 pounds of almond cereal: Direct material $12,900 Direct labor 5,000 Manufacturing overhead 7,000 Total $24,900 The manufacturing overhead consists of $1,800 of variable costs with the balance being allocated to fixed costs. A. Calculate the differential cost of Acme? B. Should Almond Treats make or buy the almond cereal?
Topper Toys has developed a new toy called the Brainbuster. The company has a standard cost system to help control costs and has established the following standards for the Brainbuster toy: Direct materials:7 diodes per toy at $0.32 per diode Direct labor: 1.5 hours per toy at $6.90 per hour During August, the company produced 5,500 Brainbuster toys. Production data on the toy for August follow: Direct materials: 79,000 diodes were purchased at a cost of $0.29 per diode. 30,875 of these diodes were still in inventory at the end of the month. Direct labor: 8,850 direct labor-hours were worked at a cost of $65,490. Required: 1. Compute the following variances for August: (Input all amounts as positive values. Do not round your per unit rates, round other intermediate calculations and your final answer to nearest whole dollar. Leave no cells blank - be certain to enter "O" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and…