Use the following standard cost and actual information to calculate the cost of 1 gallon of icecream to answer the questions below.Product: Gallon of Ice CreamManufacturingCost InformationStandardStandard CostCostper Unit$1.00 per quart$38.00 per hourQuantitySummary$6.00$1.90$7.90Direct Materials6 quartsDirect Labor3 minutesTotal Direct CostsActual costs incurred to make 50 gallons of ice cream:• 275 quarts of cream at $1.05 per gallon• 165 minutes of labor at $37.00 per hour (60 minutes = 1 hour)(a) Calculate the material price variance

Cost accounting is the method used by manufacturing businesses to understand the cost incurred in…

Use the following standard cost and actual information to calculate the cost of 1 gallon of ice cream to answer the questions below. Product: Gallon of Ice Cream Manufacturing Cost Information Standard Standard Cost Cost Quantity 6 quarts per Unit $1.00 per quart $38.00 per hour Summary $6.00 Direct Materials Direct Labor $1.90 $7.90 3 minutes Total Direct Costs Actual costs incurred to make 50 gallons of ice cream: • 275 quarts of cream at $1.05 per gallon • 165 minutes of labor at $37.00 per hour (60 minutes = 1 hour) (a) Calculate the material price variance

Use the following standard cost and actual information to calculate the cost of 1 gallon of ice cream to answer the questions below. Product: Gallon of Ice Cream Manufacturing Cost Information Standard Standard Cost Cost Quantity 6 quarts per Unit $1.00 per quart $38.00 per hour Summary $6.00 Direct Materials Direct Labor $1.90 $7.90 3 minutes Total Direct Costs Actual costs incurred to make 50 gallons of ice cream: • 275 quarts of cream at $1.05 per gallon • 165 minutes of labor at $37.00 per hour (60 minutes = 1 hour) (a) Calculate the material price variance

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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Use the following standard cost and actual information to calculate the cost of 1 gallon of ice cream to answer the questions below. Product: Gallon of Ice Cream Manufacturing Cost Information Standard Standard Cost Cost X Quantity 6 quarts Summary $6.00 $1.90 per Unit $1.00 per quart $38.00 per hour Direct Materials Direct Labor 3 minutes Total Direct Costs $7.90 Actual costs incurred to make 50 gallons of ice cream: • 275 quarts of cream at $1.05 per gallon • 165 minutes of labor at $37.00 per hour (60 minutes = 1 hour) (d) Calculate the labor efficiency (hourly) variance
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