Mountain Beverage Company produces plastic bottles. Production of 20- ounce bottles has a standard unit quantity of 2.5 ounces of plastic per bottle. During the month of June, 500,000 bottles were produced using 1,150,000 ounces of plastic. The actual cost of plastic was $0.12 per ounce and the standard price was $0.11 per ounce. There are no beginning or ending inventories of plastic. Calculate the total variance for plastic for the month of June.

Mountain Beverage Company produces plastic bottles. Production of 20- ounce bottles has a standard unit quantity of 2.5 ounces of plastic per bottle. During the month of June, 500,000 bottles were produced using 1,150,000 ounces of plastic. The actual cost of plastic was $0.12 per ounce and the standard price was $0.11 per ounce. There are no beginning or ending inventories of plastic. Calculate the total variance for plastic for the month of June.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 25E: Lowell Manufacturing Inc. has a normal selling price of 20 per unit and has been selling 125,000...

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