Question 2Johnson Co. makes organic non-GMO vegetable seed packets for the chef/gardener market. Thestandard material is 0.90 ounces per seed packet at a cost of $0.72 per ounce. Johnson Co.budgeted to make 65,000 seed packets but due to high demand, they ended up making 70,000packets. They paid $42,000 for 60,000 ounces of seed and used all but 5,000 ounces of thispurchase in production during the period.What is their material efficiency variance for this period? Enter a favorable variance is a positivenumber and an unfavorable variance as a negative number.Enter as a whole number, no commas and no dollar signs.Your Answer:Answer Ver

To calculate the material efficiency variance, we first need to find the standard quantity of…

Answered: Question 2 Johnson Co. makes organic…

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

Sell or Process Further Abica Coffee Company produces Columbian coffee in batches of 6,500 pounds. The standard quantity of materials required in the process is 6,500 pounds, which cost $6 per pound. Columbian coffee can be sold without further processing for $9 per pound. Columbian coffee can also be processed further to yield Decaf Columbian, which can be sold for $12 per pound. The processing into Decaf Columbian requires additional processing costs of $13,068 per batch. The additional processing also causes a 5% loss of product due to evaporation. a. Prepare a differential analysis dated October 6 on whether to sell regular Columbian (Alternative 1) or process further into Decaf Columbian (Alternative 2). For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Sell Regular Columbian (Alt. 1) or Process Further into Decaf Columbian (Alt. 2) October 6 SellRegularColumbian(Alternative 1) ProcessFurther…
#4 Federal Holdings consumes about 72,000 kg of flour per year. The company is open 360 days a year, The ordering cost is RM15 per order and the supplier will deliver the order in 3 days. To overcome delivery uncertainties, the shop maintains a safety stock at a level of 5 days usage. Determine the company's Reorder Point (ROP) Answer 1800 units B 2,000 units 1.600 units 02014 - 2022 Chat With Us ENG 926 AM US 2/22/2022
Dairyplus processes organic milk into plain yogurt. Dairyplus sells plain yogurt to hospitals, nursing homes, and restaurants in bulk, one-gallon containers. Each batch, processed at a cost of $890, yields 570 gallons of plain yogurt. The company sells the one-gallon tubs for $8.00 each and spends $0.14 for each plastic tub. Dairyplus has recently begun to reconsider its strategy. Management wonders if it would be more profitable to sell individual-sized portions of fruited organic yogurt at local food stores. Dairyplus could further process each batch of plain yogurt into 12,160 individual portions (3/4 cup each) of fruited yogurt. A recent market analysis indicates that demand for the product exists. Dairyplus would sell each individual portion for $0.46. Packaging would cost $0.07 per portion, and fruit would cost $0.12 per portion. Fixed costs would not change. Should Dairyplus continue to sell only the gallon-sized plain yogurt (sell as is) or convert the plain yogurt into…
Wilkin Fruit Drink Company planned to make 400,000 containers of apple juice. It expected to use two cups of frozen apple concentrate to make each container of juice, thus using 800,000 cups (400,000 containers x 2 cups) of frozen concentrate. The standard price of one cup of apple concentrate is $0.25. Actually, Wilkin produced 404,000 containers of apple juice and purchased and used 820,000 cups of concentrate at $0.26 per cup. Required a. Complete the spreadsheet template to calculate price and usage variances. Spreadsheet Tips 2. The cells that label the variances as F or U (favorable (F) or unfavorable (U)) are based on a function called IF. The IF function is needed because the variance can be either favorable or unfavorable. The formula must determine whether actual expenditures exceed budgeted expenditures to determine whether the variance is unfavorable or favorable. As an example, the formula in cell D22 is =IF(B21>E21,"U","F"). The formula evaluates the expression B21>E21.…
Pick-Me-Up Company is introducing a new high caffeine coffee in its stores and must decide what price to set for the coffee beans. An estimated demand schedule for the product is as follows: Price 1 Lb. units demanded $4.50 85,600 $6.00 74,500 $7.50 56,000 $9.00 49,100 $10.50 34,800 $12.00 27,100 Estimated costs are as follows: Variable manufacturing costs per unit $1.50 Fixed manufacturing cost per year $38,200 Variable selling & administrative costs per unit $0.50 Fixed selling & administrative costs per year $20,900 Prepare a schedule showing management the total revenue, total cost, and total profit or loss for each selling price.At what price do you recommend Pick-Me-Up Company should choose.
Fresh to Go makes a variety of delicious and healthy smoothies. It's most popular drinks contain an imported pomegranate julce and Fresh to Go can only import 64,000 ounces of the juice per month. The juice is used to make 3 different types of smoathies: Pure Pom Cherry Pom Pom Punch Selling price Variable cost Contribution margin $13.00 $9.00 $4.00 $a.00 $5.00 $3.00 $6.00 $3.50 $2.50 Ounces of pomegranate juice used 4 1 Assume there is unlimited demand for the smoothles and Fresh to Go wants to maximize sales of its smoothie with the highest contribution margin per ounce. Normally, the company pays S0.30 per ounce for pomegranate juice up to 64,000 ounces. If the company can obtain additional ounces above the 64,000, what is the maximum price it would be willing to pay per ounce? $1.10 $4.30 $2.80 $0.00
Sell or Process Further Abica Coffee Company produces Columbian coffee in batches of 6,200 pounds. The standard quantity of materials required in the process is 6,200 pounds, which cost $6 per pound. Columbian coffee can be sold without further processing for $9 per pound. Columbian coffee can also be processed further to yield Decaf Columbian, which can be sold for $12 per pound. The processing into Decaf Columbian requires additional processing costs of $12,701 per batch. The additional processing also causes a 5% loss of product due to evaporation. a. Prepare a differential analysis dated October 6 on whether to sell regular Columbian (Alternative 1) or process further into Decaf Columbian (Alternative 2). For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Sell Regular Columbian (Alt. 1) or Process Further into Decaf Columbian (Alt. 2) October 6 SellRegularColumbian(Alternative 1) ProcessFurther…
MARKETING: Kroger, the country's leading grocery-only chain, added a line of private label organic and natural foods call Simple Truth to its stores. If you've priced organic foods, you know they are more expensive. For example, a dozen conventionally farmed Grade-A eggs at Kroger costs consumers $1.61.6, whereas Simple Truth eggs are priced at $3.43.4 per dozen. One study found that, overall, the average price of organic foods is 85 percent more than that of conventional foods. However, if prices get too high, consumers will not purchase the organic options. One element of sustainability is organic farming, which costs much more than conventional farming, and those higher costs are passed on to consumers. Suppose that a conventional egg farmer's average fixed costs per year for conventionally-farmed eggs are $1 million per year, but an organic egg farmer's fixed costs are threethree times that amount. Further assume that the organic farmer's variable costs of…
Healthy Foods Inc. sells 50-pound bags of grapes to the military for $10 a bag. The fixed costs of this operation are $92,000, while the variable costs of grapes are $0.10 per pound. a. What is the break-even point in bags? (Round your answer to 2 decimal places.) Break-even point bags b. Calculate the profit or loss (EBIT) on 16,000 bags and on 34,000 bags. Bags Profit/Loss Amount 16,000 34,000 c. What is the degree of operating leverage at 26,000 bags and at 34,000 bags? (Round your answers to 2 decimal places.) Bags Degree of Operating Leverage 26,000 34,000 d. If Healthy Foods has an annual interest expense of $10,000, calculate the degree of financial leverage at both 26,000 and 34,000 bags. (Round your answers to 2 decimal places.) Bags Degree of Financial Leverage 26,000 34,000 e. What is the degree of combined leverage at both 26,000 and 34,000 bags? (Round your answers to 2 decimal places.) Bags Degree of…
Underground Food Store has 4,000 pounds of raw beef nearing its expiration date. Each pound has a cost of $4.50. The beef could be sold “as is” for $3.00 per pound to the dog food processing plant, or roasted and sold in the deli. The cost of roasting the beef will be $2.80 per pound, and each pound could be sold for $6.50. A) What is the gross profit/loss per pound if the raw beef is sold "as is" to the dog food processing plant? If it is negative, use a dash - not parentheses ( ). B) What is the gross profit/loss per pound if the raw beef is roasted and sold in the deli? If it is negative, use a dash - not parentheses ( ). C) Should the beef be sold "as is" or roasted and sold in the deli?
1 Bandar Industries manufactures sporting equipment. One of the company's products is a football helmet that requires special plastic. During the quarter ending June 30, the company manufactured 3,700 helmets, using 2,183 kilograms of plastic. The plastic cost the company $14,408. According to the standard cost card, each helmet should require 0.51 kilograms of plastic, at a cost of $7.00 per kilogram. Required: 1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3,700 helmets? 2. What is the standard materials cost allowed (SQ x SP) to make 3,700 helmets? 3. What is the materials spending variance? 4. What is the materials price variance and the materials quantity variance? For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.) 1. Standard quantity of kilograms…
Dairyplus processes organic milk into plain yogurt. Dairyplus sells plain yogurt to hospitals, nursing homes, and restaurants in bulk, one-gallon containers. Each batch, processed at a cost of $890, yields 540 gallons of plain yogurt. The company sells the one-gallon tubs for $7.00 each and spends $0.16 for each plastic tub. Dairyplus has recently begun to reconsider its strategy. Management wonders if it would be more profitable to sell individual-sized portions of fruited organic yogurt at local food stores. Dairyplus could further process each batch of plain yogurt into 11,520 individual portions (3/4 cup each) of fruited yogurt. A recent market analysis indicates that demand for the product exists. Dairyplus would sell each individual portion for $0.40. Packaging would cost $0.05 per portion, and fruit would cost $0.10 per portion. Fixed costs would not change. Should Dairyplus continue to sell only the gallon-sized plain yogurt (sell as is) or convert the plain yogurt…

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS