Manzana Company produces apple juice sold in gallons. Recently, the company adopted the following material standard for one gallon of its apple juice: Direct materials 128 oz. @ $0.05 = $6.40 During the first week of operation, the company experienced the following results: a. Gallon units produced: 20,000. b. Ounces of materials purchased and used: 2,650,000 ounces at $0.045. c. No beginning or ending inventories of raw materials. Required: 1. Compute the materials price variance. 2. Compute the materials usage variance.

Manzana Company produces apple juice sold in gallons. Recently, the company adopted the following material standard for one gallon of its apple juice: Direct materials 128 oz. @ $0.05 = $6.40 During the first week of operation, the company experienced the following results: a. Gallon units produced: 20,000. b. Ounces of materials purchased and used: 2,650,000 ounces at $0.045. c. No beginning or ending inventories of raw materials. Required: 1. Compute the materials price variance. 2. Compute the materials usage variance.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead

Section: Chapter Questions

Problem 3P: Zippy Inc. manufactures a fuel additive, Surge, which has a stable selling price of 44 per drum. The...

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Manzana Company produces apple juice sold in gallons. Recently, the company adopted the following material standard for one gallon of its apple juice: Direct materials 128 oz. @ $0.05 = $6.40 During the first week of operation, the company experienced the following results: a. Gallon units produced: 20,000. b. Ounces of materials purchased and used: 2,650,000 ounces at $0.045. c. No beginning or ending inventories of raw materials. Required: 1. Compute the materials price variance. 2. Compute the materials usage variance.
Jugo Company produces apple juice sold in gallons. Recently, the company adopted the following material standard for one gallon of its apple juice: Direct materials 128 oz. @ $0.06 = $7.68 During the first week of operation, the company experienced the following results: Gallon units produced: 23,000. Ounces of materials purchased and used: 2,720,000 ounces at $0.040. No beginning or ending inventories of raw materials. Required: Note: Enter favorable values as negative numbers. Enter unfavorable values as positive numbers. 1. Compute the materials price variance.fill in the blank 1 of 1$ 2. Compute the materials usage variance.fill in the blank 1 of 1$ 3. During the second week, the materials usage variance was $4,000 unfavorable and the materials price variance was $23,000 unfavorable. The company purchased and used 2,300,000 ounces of material during this week. How many gallons of juice were produced? If required, round your answer to nearest whole value.fill in the…
Manzana Company produces apple juice sold in gallons. Recently, the company adopted the following material standard for one gallon of its apple juice: Direct materials 128 oz. @ $0.05 = $6.40 During the first week of operation, the company experienced the following results: Gallon units produced: 24,000. Ounces of materials purchased and used: 2,650,000 ounces at $0.045. No beginning or ending inventories of raw materials. Required: Note: Enter favorable values as negative numbers. Enter unfavorable values as positive numbers. 1. Compute the materials price variance.$fill in the blank 1 2. Compute the materials usage variance.$fill in the blank 3 3. During the second week, the materials usage variance was $4,000 unfavorable and the materials price variance was $24,000 unfavorable. The company purchased and used 2,480,000 ounces of material during this week. How many gallons of juice were produced? If required, round your answer to nearest whole value.fill in the blank 5…
Berner Company produces a dark chocolate candy bar. Recently, the company adopted the following standards for one bar of the candy: Direct materials (8.30 oz. @ $0.09) $0.75 Direct labor (0.09 hr. @ $18.00) 1.62 Standard prime cost $2.37 During the first week of operation, the company experienced the following actual results: Bars produced: 144,000. Ounces of direct materials purchased: 1,195,500 ounces at $0.08 per ounce. There are no beginning or ending inventories of direct materials. Direct labor: 12,820 hours at $17.30. Required: Instructions for parts 1 and 2: If a variance is zero, enter "0" and select "Not applicable" from the drop down box. 1. Compute price and usage variances for direct materials. Materials Price Variance $_______ Favorable Materials Usage Variance $______ Unfavorable 2. Compute the rate variance and the efficiency variance for direct labor. Labor Rate Variance $______ Favorable Labor Efficiency Variance $_____ Favorable…
SPY Company processes 30,000 gallons of direct materials to produce two products, Product X and Product Y. Product X, the byproduct, sells for $2 per gallon and Product Y, the main product, sells for $50 per gallon. The following information is for August: Production Product X (in gallons): 6,000 Product Y in gallons): 24,000 O None of the choices O $4,000 O 50 O $12,000 $8.000 Sales Begin Inventory 4,000 24,000 0 125 Ending Inventory The manufacturing costs totaled $30,000. How much is the ending inventory for the byproduct if byproducts are recognized in the general ledger at the point of production? 2,000 125
Fevicol For All has developed the following material standard to produce one container of Fevicol-It: 96 ounces of Chemical A at $0.15 per ounce. Fevicol For All planned to produce 2,000 containers of Fevicol-It during July. The company purchased 1,500 gallons (192,000 ounces) of Chemical A at a cost of $0.14 per ounce in July. The company used 1,480 gallons to produce 1,950 containers of Fevicol-It. How much is the material price variance? Don't Use Ai
Fevicol For All has developed the following material standard to produce one container of Fevicol-It: 96 ounces of Chemical A at $0.15 per ounce. Fevicol For All planned to produce 2,000 containers of Fevicol-It during July. The company purchased 1,500 gallons (192,000 ounces) of Chemical A at a cost of $0.14 per ounce in July. The company used 1,480 gallons to produce 1,950 containers of Fevicol-It. How much is the material price variance? Accurate Answer
Fevicol For All has developed the following material standard to produce one container of Fevicol-It: 96 ounces of Chemical A at $0.15 per ounce. Fevicol For All planned to produce 2,000 containers of Fevicol-It during July. The company purchased 1,500 gallons (192,000 ounces) of Chemical A at a cost of $0.14 per ounce in July. The company used 1,480 gallons to produce 1,950 containers of Fevicol-It. How much is the material price variance?
Young Inc. produces plastic bottles. Production of 16-ounce bottles has a standard unitquantity of 0.45 ounce of plastic per bottle. During the month of June, 240,000 bottleswere produced using 110,000 ounces of plastic. The actual cost of plastic was $0.042 perounce, and the standard price was $0.045 per ounce. There is no beginning or ending inventories of plastic. Refer to the information for Young Inc. above.Required:Calculate the materials price and usage variances using the columnar and formula approaches.Use the following information to complete Brief Exercises 10-36 and 10-37:Ambient Inc. produces aluminum cans. Each can has a standard labor requirement of 0.03hour. During the month of May, 500,000 cans were produced using 14,000 labor hours @$15.00. The standard wage rate is $14.50 per hour.
Genuine Spice Inc. began operations on January 1 of the current year. The company produces eight- ounce bottles of hand and body lotion called Eternal Beauty. The lotion is sold wholesale in 12-bottle cases for $100 per case. There is a selling commission of $20 per case. The January direct materials, direct labor, and factory overhead costs are as follows: DIRECT MATERIALS Cost Behavior Units per Case Cost per Unit Cost per Case Cream base Variable 100 oz. $0.02 $ 2.00 Natural oils Variable 30 oz. 0.30 9.00 Bottle (8-oz.) Variable 12 bottles 0.50 6.00 $17.00 DIRECT LABOR Department Cost Behavior Time per Case Labor Rate per Hour Cost per Case Mixing Variable 20 min. $18.00 $6.00 Filling Variable 5 14.40 1.20 25 min. $7.20 FACTORY OVERHEAD Cost Behavior Total Cost Utilities Mixed $600 Facility lease Fixed 14,000 Equipment depreciation Fixed 4,300 Supplies Fixed 660 $19,560 Part A—Break-Even Analysis The…
Genuine Spice Inc. began operations on January 1 of the current year. The company produces eight- ounce bottles of hand and body lotion called Eternal Beauty. The lotion is sold wholesale in 12-bottle cases for $100 per case. There is a selling commission of $20 per case. The January direct materials, direct labor, and factory overhead costs are as follows: DIRECT MATERIALS Cost Behavior Units per Case Cost per Unit Cost per Case Cream base Variable 100 oz. $0.02 $ 2.00 Natural oils Variable 30 oz. 0.30 9.00 Bottle (8-oz.) Variable 12 bottles 0.50 6.00 $17.00 DIRECT LABOR Department Cost Behavior Time per Case Labor Rate per Hour Cost per Case Mixing Variable 20 min. $18.00 $6.00 Filling Variable 5 14.40 1.20 25 min. $7.20 FACTORY OVERHEAD Cost Behavior Total Cost Utilities Mixed $600 Facility lease Fixed 14,000 Equipment depreciation Fixed 4,300 Supplies Fixed 660 $19,560 The management of Genuine Spice…
Succulent Juice Corporation manufactures and sells premium tomato juice by the gallon. Succulent just finished its first year of operations. The following data relates to this first year: Number of gallons produced 75,000 Number of gallons sold 70,000 Selling price $ 3.00 per gallon Unit product cost under variable costing $ 1.45 per gallon Total contribution margin $ 84,000 Total fixed manufacturing overhead cost $ 63,000 Total fixed selling & administrative expense $ 10,500 Required:Using absorption costing, prepare Succulent Juice Corporation's income statement for the year.