Table 8: THE ROGER COMPANY CASEThe Roger Company produces product NRV by heating materials X, Y, and Z. Normal evaporation loss is 20%; thus, 1,000 gallons of input areanticipated to yield an output of 800 gallons.STANDARDS for 800 gallons of NRV:Material XMaterial YMaterial ZTotals/Weighted AverageOUTPUT of 40,000 gallons, actual costs:Material XMaterial YMaterial ZTotals/Weighted AverageGALLONS6003001001,000GALLONS26,00018,2007,80052,000PRICE PER GALLON$0.80$1.20$1.60$1.00PRICE PER GALLON$0.82$1.23$1.67$1.091TOTAL$480360160$1,000TOTAL$21,32022,38613,026$56,732Use the above information to calculate the materials price and efficiency variances. Then break down the efficiency variance into the mix andyield variances. Explain any computational similarities as compared to the calculations of any of those variances you calculated for the

Calculation of Variances, from the data provided

Answered: Use the above information to calculate…

Use the above information to calculate the materials price and efficiency variances. Then break down the efficiency variance into the mix an a pang p + + +1+34

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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Question

Table 8: THE ROGER COMPANY CASE
The Roger Company produces product NRV by heating materials X, Y, and Z. Normal evaporation loss is 20%; thus, 1,000 gallons of input are
anticipated to yield an output of 800 gallons.
STANDARDS for 800 gallons of NRV:
Material X
Material Y
Material Z
Totals/Weighted Average
OUTPUT of 40,000 gallons, actual costs:
Material X
Material Y
Material Z
Totals/Weighted Average
GALLONS
600
300
100
1,000
GALLONS
26,000
18,200
7,800
52,000
PRICE PER GALLON
$0.80
$1.20
$1.60
$1.00
PRICE PER GALLON
$0.82
$1.23
$1.67
$1.091
TOTAL
$480
360
160
$1,000
TOTAL
$21,320
22,386
13,026
$56,732
Use the above information to calculate the materials price and efficiency variances. Then break down the efficiency variance into the mix and
yield variances. Explain any computational similarities as compared to the calculations of any of those variances you calculated for the

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