Can you please solve these general accounting question? Magno Cereal Corporation uses a standard costsystem to collect costs related to the productionof its "crunchy pickle" cereal. The materialsstandard for each batch of cereal produced is 1.4pounds of pickles at a standard cost of $3.00 perpound. During the month of August, Magnopurchased 78,000 pounds of pickles at a total costof $253,500. Magno used all of these pickles toproduce 60,000 batches of cereal. What isMagno's materials quantity variance for themonth of August?

Step 1: Define Material quantity varianceIn standard costing, there are various methods for the…

Answered: Magno Cereal Corporation uses a…

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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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 ( ).
Dawson Toys, Ltd., produces a toy called the Maze. The company has recently created a standard cost system to help control costs and has established the following standards for the Maze toy: Direct materials: 6 microns per toy at $1.50 per micron Direct labor: 1.3 hours per toy at $21 per hour During July, the company produced 3,000 Maze toys. The toy's production data for the month are as follows: Direct materials: 25,000 microns were purchased at a cost of $1.48 per micron. 5,000 of these microns were still in inventory at the end of the month. Direct labor. 4,000 direct labor-hours were worked at a cost of $88,000. Required: 1. Compute the following variances for July: (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) a. The materials price and quantity variances. b. The labor rate and efficiency variances. 1а. Material price variance Material quantity…
Dawson Toys, Ltd., produces a toy called the Maze. The company has recently established a standard cost system to help control costs and has established the following standards for the Maze toy: Direct materials: 6 microns per toy at $0.32 per micron Direct labor: 1.2 hours per toy at $6.60 per hour During July, the company produced 5,000 Maze toys. The toy's production data for the month are as follows: Direct materials: 79,000 microns were purchased at a cost of $0.30 per micron. 41,500 of these microns were still in inventory at the end of the month. Direct labor. 6,400 direct labor-hours were worked at a cost of $44,800. Required: 1. Compute the following variances for July: (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations. Round final answers to the nearest whole dollar amount.) a. The materials price and quantity…
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Dawson Toys, Limited, produces a toy called the Maze. The company has recently created a standard cost system to help control costs and has established the following standards for the Maze toy: Direct materials: 7 microns per toy at $0.34 per micron Direct labor: 1.4 hours per toy at $7.10 per hour During July, the company produced 5,000 Maze toys. The toy's production data for the month are as follows: Direct materials: 79,000 microns were purchased at a cost of $0.31 per micron. 35,250 of these microns were still in inventory at the end of the month. Direct labor: 7,400 direct labor-hours were worked at a cost of $57,720. Required: Compute the following variances for July: Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations. Round final answer to the nearest whole dollar amount. The materials price and quantity…
Vishnu
Dawson Toys, Limited, produces a toy called the Maze. The company has recently created a standard cost system to help control costs and has established the following standards for the Maze toy: Direct materials: 7 microns per toy at $0.32 per micron Direct labor: 1.3 hours per toy at $6.70 per hour During July, the company produced 5,200 Maze toys. The toy's production data for the month are as follows: Direct materials: 76,000 microns were purchased at a cost of $0.30 per micron. 30,500 of these microns were still in inventory at the end of the month. Direct labor. 7,260 direct labor-hours were worked at a cost of $53,724. Required: 1. Compute the following variances for July: (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations. Round final answers to the nearest whole dollar amount.) a. The materials price and quantity…
Dawson Toys, Ltd., produces a toy called the Maze. The company has recently established a standard cost system to help control costs and has established the following standards for the Maze toy: Direct materials: 8 microns per toy at $0.32 per micron Direct labor: 1.5 hours per toy at $7.50 per hour During July, the company produced 5,300 Maze toys. The toy's production data for the month are as follows: Direct materials: 70,000 microns were purchased at a cost of $0.29 per micron. 17,000 of these microns were still in inventory at the end of the month. Direct labor. 8,250 direct labor-hours were worked at a cost of $66,00o. Required: 1. Compute the following variances for July: (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations. Round final answer to the nearest whole dollar amount.) a. The materials price and quantity…
Dawson Toys, Ltd., produces a toy called the Maze. The company has recently established a standard cost system to help control costs and has established the following standards for the Maze toy: Direct materials: 8 microns per toy at $0.35 per micron Direct labor: 1.1 hours per toy at $7.40 per hour During July, the company produced 5,400 Maze toys. The toy's production data for the month are as follows: Direct materials: 76,000 microns were purchased at a cost of $0.31 per micron. 22,000 of these microns were still in inventory at the end of the month. Direct labor: 6,440 direct labor-hours were worked at a cost of $50,876. Required: 1. Compute the following variances for July a. The materials price and quantity variances.
Dawson Toys, Limited, produces a toy called the Maze. The company has recently created a standard cost system to help control costs and has established the following standards for the Maze toy: Direct materials: 7 microns per toy at $0.34 per micron Direct labor: 1.5 hours per toy at $7.40 per hour During July, the company produced 5,500 Maze toys. The toy's production data for the month are as follows: Direct materials. 71,000 microns were purchased at a cost of $0.31 per micron. 22,875 of these microns were still in inventory at the end of the month. Direct labor. 8,850 direct labor-hours were worked at a cost of $69,915. Required: 1. Compute the following variances for July: (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations. Round final answer to the nearest whole dollar amount.) S a. The materials price and quantity…

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