Nantucket Enterprises manufactures insulated cold beverage cups printed with college and corporate logos, which it distributes nationally in lots of 12 dozen cups. In June 2017, Nantucket produced 5,000 lots of its most popular line of cups, the 24-ounce lidded tumbler, at each of its two plants, which are located in Providence and Amherst. The production manager, Shannon Bryant, asks her assistant, Joel Hudson, to find out the precise per-unit budgeted variable costs at the two plants and the variable costs of a competitor, Beverage Mate, who offers similar-quality tumblers at cheaper prices. Hudson pulls together the following information for each lot: Providence Plant 74 Ibs. @ $3.20 per Ib. Per lot Direct materials Direct manufacturing labor Variable overhead Amherst Plant 76.5 Ibs. @ $3.10 per Ib. 2.5 hrs. @$12.00 per hr. 2.4 hrs. @$12.20 per hr. 2.4 hrs. @ $10.50 per hr. $22 per lot Beverage Mate 70 Ibs. @ $2.90 per Ib. $20 per lot $20 per lot

Nantucket Enterprises manufactures insulated cold beverage cups printed with college and corporate logos, which it distributes nationally in lots of 12 dozen cups. In June 2017, Nantucket produced 5,000 lots of its most popular line of cups, the 24-ounce lidded tumbler, at each of its two plants, which are located in Providence and Amherst. The production manager, Shannon Bryant, asks her assistant, Joel Hudson, to find out the precise per-unit budgeted variable costs at the two plants and the variable costs of a competitor, Beverage Mate, who offers similar-quality tumblers at cheaper prices. Hudson pulls together the following information for each lot: Providence Plant 74 Ibs. @ $3.20 per Ib. Per lot Direct materials Direct manufacturing labor Variable overhead Amherst Plant 76.5 Ibs. @ $3.10 per Ib. 2.5 hrs. @$12.00 per hr. 2.4 hrs. @$12.20 per hr. 2.4 hrs. @ $10.50 per hr. $22 per lot Beverage Mate 70 Ibs. @ $2.90 per Ib. $20 per lot $20 per lot

Name: Q.Using the Beverage Mate data as the standard, calculate the direct m
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Description: Q.Using the Beverage Mate data as the standard, calculate the direct materials and direct manufacturing labor price and efficiency variances for the Providence and Amherst plants. Nantucket Enterprises manufactures insulatedcold beverage cups printed

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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