**Problem 17-52 (Algo) Materials Mix and Yield Variances (LO 17-5)**Pinnuck Products makes a liquid solvent using two grades of petroleum (Grade-1 and Grade-2). Within certain limits, the two grades can substitute for one another, so the actual mix of inputs often differs from the standard mix. The standard cost of a unit of output follows:| Input Grade | Quantity | Cost per Unit ||-------------|----------|---------------|| Grade-1 | 1.2 units | $8.55 || Grade-2 | 0.8 units | $6.55 |10,700 units were produced during August. The actual inputs purchased and used during August were as follows:| Input Grade | Total Quantity | Cost per Unit ||-------------|----------------|---------------|| Grade-1 | 15,500 units | $8.45 || Grade-2 | 8,400 units | $6.75 |**Required:**Prepare a complete materials variance analysis showing the material price variance, the materials efficiency variance, the material mix variance, and the material yield variance. *(Do not round intermediate calculations. Round "Standard mix values" to 2 decimal places. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)*| Input Grade | Mix Variance | Yield Variance | Efficiency Variance | Purchase Price Variance ||-------------|--------------|----------------|----------------------|--------------------------|| Grade-1 | | | | || Grade-2 | | | | |

Name: **Problem 17-52 (Algo) Materials Mix and Yield Variances (LO 17-5)**P
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: **Problem 17-52 (Algo) Materials Mix and Yield Variances (LO 17-5)**Pinnuck Products makes a liquid solvent using two grades of petroleum (Grade-1 and Grade-2). Within certain limits, the two grades can substitute for one another, so the actual mix

1.Material Price Variance = Actual Quantity ( Standard Price - Actual Price) Grade 1= 15,500 units ( $8.55 -$8.45) = $1,550F Grade 2= 8,400 Units ( $6.55 -$6.75)= $1,680U Material price variance= 1,550F + 1,680U= 130UMaterial efficiency Variance= Standard Rate ( Standard quantity for actual output- Actual Quantity) Grade 1= 8.55 (10,700 x1.2 - 15,500) = 22,743 U Grade 2 = 6.55(10,700 x 0.80 - 8,400)= 1,048 F Material efficiency Variance= 22,743U + 1,048F = 21,695 U Material Mix Variance = Standard price(Revised Actual Quantity - Actual Quantity ) Revised Actual Quantity Particular Actual Quantity standard proportion Revised Actual Quantity Grade 1 15,500 1.2/(1.2+.8)= 0.60 14,340 (23,900 x0.60) Grade 2 8,400 0.8/(1.2+0.8)= 0.40 9,560 Total 23,900 23,900 To calculate the revised Actual Quantity we have re written the actual figures in standard proportion. Material Mix Variance= Grade 1= 8.55 ( 14,340-15,500)= 9,918 U Grade 2 = 6.55(9,560 -8,400)= 7,598 F Material Mix Variance= 9,918U +7,598F= 2,320U Grade 1 mix variance is Unfavorable because Actual Quantity is more than the Revised Actual Quantity Grade 2 mix variance is favourable because Actual Quantity is less than Revised Actual Quantity. Material yield variance= standard Rate( standard quantity for actual output - revised Actual Quantity) Grade 1 = 8.55(10,700 x 1.2 -14,340)= 12,825U Grade 2 = 6.55(10,700 x0.80-9,560)= 6550 U Material Yield variance= 12825U+6,550U= 19,375 U Revised Actual Quantity is more than standard quantity therefore material yield variance is Unfavorable.Material cost variance = Standard Rate x standard quantity - actual Rate x actual quantity Grade 1= 8.55 x 10,700 x 1.2 - 8.45 x 15,500= Garde 1 = 109,782 - 130,975= 21,193 U Grade 2 = 6.55 x 10700x 0.80 - 8,400 x 6.75 = Grade 2= 56,068 -56,700= 632U Material cost variance= 21193U+632U = 21,825 U

Business

Accounting

Problem 17-52 (Algo) Materials Mix and Yield Varlances (LO 17-5) Pinnuck Products makes a liquid solvent using two grades of petroleum (Grade-1 and Grade-2). Within certain limits, the two grades can substitute for one another, so the actual mix of inputs often differs from the standard mix. The standard cost of a unit of output follows. Input Grade Grade-1 Quantity 1.2 units Cost per Unit $8.55 Grade-2 0.8 units $6.55 10,700 units were produced during August. The actual inputs purchased and used during August were as follows. Cost per Input Grade Grade-1 Grade-2 Total Quantity 15,500 units 8, 400 units Unit $8.45 $6.75 Required: Prepare a complete materials variance analysis show the material price variance, the materials efficiency variance, the material mix variance, and the materlal yleld varlance. (Do not round Intermedlate calculatlons. Round "Standard mix values" to 2 declmal places. Indicate the effect of each varlance by selecting "F" for favorable, or "U" for unfavorable. If there Is no effect, do not sele elther optlon.) Direct Material Input Grade Mix Variance Yield Variance Efficiency Variance Purchase Price Variance

Problem 17-52 (Algo) Materials Mix and Yield Varlances (LO 17-5) Pinnuck Products makes a liquid solvent using two grades of petroleum (Grade-1 and Grade-2). Within certain limits, the two grades can substitute for one another, so the actual mix of inputs often differs from the standard mix. The standard cost of a unit of output follows. Input Grade Grade-1 Quantity 1.2 units Cost per Unit $8.55 Grade-2 0.8 units $6.55 10,700 units were produced during August. The actual inputs purchased and used during August were as follows. Cost per Input Grade Grade-1 Grade-2 Total Quantity 15,500 units 8, 400 units Unit $8.45 $6.75 Required: Prepare a complete materials variance analysis show the material price variance, the materials efficiency variance, the material mix variance, and the materlal yleld varlance. (Do not round Intermedlate calculatlons. Round "Standard mix values" to 2 declmal places. Indicate the effect of each varlance by selecting "F" for favorable, or "U" for unfavorable. If there Is no effect, do not sele elther optlon.) Direct Material Input Grade Mix Variance Yield Variance Efficiency Variance Purchase Price Variance

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A-5
PLS ABC corporation produces plastic bottles. Details of cost are given below: Standard unit quantity per plastic bottle Actual production of bottles Actual quantity used Actual cost of plastic Standard price 0.045 ounce per plastic bottle 240,000 110,000 S0.042 per ounce $0.045 per ounce Material price variance for ABC corporation is: a. $330 Unfavorable b. $720 Favorable c. $330 Favorable d. $720 Unfavorable
None
Data table Units of D4H produced and sold 1. 2. Selling price 3. Direct materials (kilograms) 4. Direct material cost per kilogram 5. Manufacturing capacity (units of D4H) 6. Total conversion costs 7. 8. Selling and customer-service capacity 9. Total selling and customer-service costs 10. Selling and customer-service capacity cost per customer 11. Design staff 12. Total design costs 13. Design cost per employee Conversion cost per unit of capacity Alt+Q Print Done $ $ 210 41,000 $ 310,000 7.25 $ 250 2,125,000 $ 8,500 $ $ $ 2,150,000 8,600 95 customers 90 customers 900,000 10,000 12 1,045,000 $ 11,000 $ 12 1,212,000 $ 101,000 $ $ $ ZUZT $ $ ZUZZ 235 43,000 325,000 7.75 250 1,218,000 101,500 (similar to) Data table HW Score: 3.03%, 0.12 of 4 points Daint 0 10 of 1 Revenue effect of growth Cost effect of growth The company has chosen a product differentiation strategy. The growth, price- recovery, and productivity components of the change in operating income from 2021 to 2022 are as…
Subject: Accounting
COST ACCOUNTING PLS SHOW SOLUTION
High-Low Method Tashiro Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows: Units Produced Total Costs 6,300 $482,160 2,100 309,960 4,120 459,430 a. Determine the variable cost per unit and the total fixed cost. Variable cost (Round to two decimal places.) per unit Total fixed cost b. Based on part (a), estimate the total cost for 3,020 units of production. Total cost for 3,020 units:
Exercise 11-41 (Algo) Net Realizable Value Method: Multiple Choice (LO 11-7) Oak View Chemicals produces two main products, M-10 and M-20, and one by-product, B-60, from a single input, Chem-X. Products M-10 and M-20 can either be sold at split-off or processed further and sold. A given batch begins with 1,140 gallons of Chem-X with a cost of $102,600. Additional information regarding a batch follows. If Processed Further Product Units Produced Unit Sales Value at Split-off Additional Costs (Per Unit) Sales Value (Per Unit) M-10 25,080 $ 5.00 $ 2.00 $ 6.00 M-20 15,960 $ 10.00 $ 4.00 $ 16.00 B-60 5,700 $ 0.50 NA NA Oak View Chemicals uses the net realizable at split-off approach to allocate joint costs and treats the sales value of the by-product B-60 as other income. Required: The joint cost allocated to product M-10 at Oak View Chemicals for a given batch is Multiple Choice $62,700 $45,144 $43,890…
question 2
Homework, Chapter 25 Process or Sell Product J19 is produced for $3.42 per gallon. Product J19 can be sold without additional processing for $4.10 per gallon, or processed further into Product R33 at an additional cost of $0.48 per gallon. Product R33 can be sold for $4.54 per gallon. a. Prepare a differential analysis dated April 30 on whether to sellI Product J19 (Alternative 1) or process further into Product R33 (Alternative 2). Round your answers to the nearest cent. If required, use a minus sign to indicate a loss. Differential Analysis Sell Product J19 (Alt. 1) or Process Further into Product R33 (Alt. 2) April 30 Process Sell Differential Further into Product J19 Effects Product R33 (Alternative 1) (Alternative 2) (Alternative 2) Revenues, per unit $ Costs, per unit Profit (loss), per unit b. Should Product J19 be sold (Alternative 1) or processed further into Product R33 (Alternative 2)?
High-low method Evander Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows: Units Produced 1,430 2,530 3,630 Total Costs $190,080 262,310 295,680 a. Determine the variable cost per unit and the total fixed cost. Variable cost $ Total fixed cost $ b. Based on part (a), estimate the total cost for 1,820 units of production. Total cost for 1,820 units $
Heidelberg Fabrication manufactures two products, G -09 and G-35: \table[[, G- 69, G-35], [Units produced, 18,700, 3, 740], [Direct materials cost per unit, $7,$19 C Heidelberg Fabrication manufactures two products, G-09 and G-35: G-09 6-35 Units produced 18,700 3,740 Direct materials cost per unit Machine-hours per unit $ 7 $ 19 Production runs per quarter 4 144 7 72 Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at the plant follow: Machine depreciation Setup labor Materials handling Total $ 100,980 50,490 40,392 $ 191,862 Required: a. Compute the unit costs for the two products, G-09 and G-35, using the current costing system at Heidelberg (using machine-hours as the allocation basis). b. Compute the unit costs for the two products, G-09 and G-35, using the proposed ABC system at Heidelberg. Note: For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. Unit Cost G-09 G-35…