Mixing Company manufactured 2,640 units of its only product during 2022. The inputs for this production are as follows: 550 pounds of Material A at a cost of $1.50 per pound 500 pounds of Material H at a cost of $2.75 per pound 700 direct labor hours at $60 per hour The firm manufactured 3,300 units of the same product in 2021 with the following inputs: 700 pounds of Material A at a cost of $2.20 per pound 560 pounds of Material H at a cost of $3.50 per pound 600 direct labor hours at $58 per hour In 2022, the partial financial productivity of Material H is: Multiple Choice 0.21. 0.58. 1.92. 3.51. 5.27.
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Mixing Company manufactured 2,640 units of its only product during 2022. The inputs for this production are as follows:
550 pounds of Material A at a cost of $1.50 per pound
500 pounds of Material H at a cost of $2.75 per pound
700 direct labor hours at $60 per hour
The firm manufactured 3,300 units of the same product in 2021 with the following inputs:
700 pounds of Material A at a cost of $2.20 per pound
560 pounds of Material H at a cost of $3.50 per pound
600 direct labor hours at $58 per hour
In 2022, the partial financial productivity of Material H is:
Multiple Choice
0.21.
0.58.
1.92.
3.51.
5.27.
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