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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Olympic Foods Company uses a
Use the information given in Question No. 1 to calculate Olympic's materials quantity variance for the month of June.
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