Vet-Pro, Inc., produces a veterinary grade anti-anxiety mixture for pets with behavioral problems. Two chemical solutions, Aranol and Lendyl, are mixed and heated to produce a chemical that is sold to companies that produce the anti-anxiety pills. The mixture is produced in batches and has the following standards: Direct Material Standard Mix Standard Unit Price Standard Cost Aranol Lendyl 2,400 gallons $5.00 per gallon 17,600 7.00 Total 20,000 gallons Yield 16,000 gallons $12,000 123,200 $135,200 During March, the following actual production information was provided: Direct Material Actual Mix Aranol Lendyl Total 52,000 gallons 148,000 200,000 gallons 166,000 gallons Yield Required: 1. Compute the direct materials mix and yield variances. In your computations, round the standard cost of the yield to 3 decimal places. Use rounded number in the subsequent computations. Mix variance Yield variance Favorable Favorable 2. Compute the total direct materials usage variance for Aranol and Lendyl. Favorable

Vet-Pro, Inc., produces a veterinary grade anti-anxiety mixture for pets with behavioral problems. Two chemical solutions, Aranol and Lendyl, are mixed and heated to produce a chemical that is sold to companies that produce the anti-anxiety pills. The mixture is produced in batches and has the following standards: Direct Material Standard Mix Standard Unit Price Standard Cost Aranol Lendyl 2,400 gallons $5.00 per gallon 17,600 7.00 Total 20,000 gallons Yield 16,000 gallons $12,000 123,200 $135,200 During March, the following actual production information was provided: Direct Material Actual Mix Aranol Lendyl Total 52,000 gallons 148,000 200,000 gallons 166,000 gallons Yield Required: 1. Compute the direct materials mix and yield variances. In your computations, round the standard cost of the yield to 3 decimal places. Use rounded number in the subsequent computations. Mix variance Yield variance Favorable Favorable 2. Compute the total direct materials usage variance for Aranol and Lendyl. Favorable

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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Mangia Pizza Company makes frozen pizzas that are sold through grocery stores. Mangia developed the following standard mix for spreading on premade pizza shells to produce 16 giant-size sausage pizzas. Direct Material Mix Mix Proportion SP Standard Cost Tomato sauce 13 lbs 0.325 $1.40 $18.20 Cheese 15 0.375 2.80 42.00 Sausage 12 0.300 2.10 25.20 Total 40 lbs $85.40 Mangia put a batch of 2,000 pounds of direct materials (enough for 800 frozen sausage pizzas) into process. Of the total, 700 pounds were tomato sauce, 840 pounds were cheese, and the remaining 460 pounds were sausage. The actual yield was 780 pizzas. What if of the total 2,000 pounds of ingredients put into process, 700 pounds were tomato sauce, 700 pounds were cheese, and 600 pounds were sausage? How would that affect the mix variance?The mix variance will be
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Suds & Cuts is a local pet grooming shop owned by Collin Bark. Collin has prepared the following standard cost card for each dog bath given: Shampoo Water Direct labor Standard Quantity 2.9 27 1.65 ounces gallons hour Standard Rate $0.50 Standard Unit Cost per ounces $1.45 1.08 19.80 $0.04 per gallons $12.00 per hour During the month of July, Collin's employees gave 470 baths. The actual results were 785 ounces of shampoo used (cost of $471.00), 7,700 gallons of water used (cost of $616), and labor costs for 410 hours (cost of $5,371). Required: 1. Calculate Suds & Cuts, direct materials variances for both shampoo and water for the month of July. 2. Calculate Suds & Cuts, direct labor variances for the month of July. > Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate Suds & Cuts, direct labor variances for the month of July. Note: Indicate the effect of each variance by selecting "F" for…
Suds & Cuts is a local pet grooming shop owned by Collin Bark. Collin has prepared the following standard cost card for each dog bath given: Standard Quantity Standard Rate Standard Unit Cost Shampoo 1.4 oz. $ 0.40 per oz. $ 0.56 Water 12 gal. $ 0.04 per gal. 0.48 Direct labor 0.9 hr. $ 9.00 per hr. 8.10 During the month of July, Collin’s employees gave 320 baths. The actual results were 710 ounces of shampoo used (cost of $340.80), 6,200 gallons of water used (cost of $434), and labor costs for 260 hours (cost of $2,756). Required: 1. Calculate Suds & Cuts direct materials variances for both shampoo and water for the month of July. 2. Calculate Suds & Cuts direct labor variances for the month of July.
The company sells firm and extra firm mattresses. We plan to use ABC. The company has accumulated the following data. Activities Cost Cost DriverMaterials processing $1,400,000 Number of partsFirmness testing 400,000Number of testsCustomer calls 200,000 Number of customer calls During the year, 100,000 parts were handled (75,000 for firm mattresses and 25,000 for extra firm), 20,000 firmness tests were conducted (12,500 for firm and 7,500 for extra firm), and 10,000 customers’ calls were answered (7,500 for firm and 2,500 for extra firm) A. Calculate the overhead rates for each activity.B. Calculate the dollar amount of overhead that should be assigned to firm and to extra firm.
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Boulder Toys manufactures powered, ride-on tractors and other equipment for children. There are three models, increasing in features and detail: XL, XLS, and XLT. All three models start in the Assembly Department, where the raw material is shaped and components, such as tires and motor, are assembled. The XL and XLS model are then sent to the Packaging Department where they are made ready for delivery to dealers. The XLT model is sent from the Assembly Department to the Customization Department where it is detailed with various special order paints and logos. Boulder Toys uses operations costing and conversion costs are allocated to products based on the number of units produced. No work-in-process inventories exist in any of the three departments. Data for October follow: Total Units produced 3,800 XL 1,800 XLS XLT 1,350 650 Costs: Materials $ 559,150 $156,600 $ 180,900 $221,650 Conversion costs Assembly $ 307,800 Customization: Packaging Total conversion cost Required: 27,950 72,200…
Lala Land Sdn Bhd manufactures two types of educational toy for the school children namely Lili and Lolo. The manufacturing of the toys will use two types of materials, 001 and 002, and two grades of labour, skilled labour and semi-skilled labour. Data regarding the consumption of material and the hours worked to produce one unit of each product is shown below: Lili Lolo Direct material 001 10 kilos 12 kilos (RM4 per kg) Direct material 002 3 kilos 2 kilos (RM10 per kg) Skilled labour 4 hours 2.5 hours (RM10 per hour) Semi-skilled labour 2 hours 1.5 hours (RM6 per hour) 重 Projected data for January 2018 are as follows: LIN Lolo 001 002 Opening stock (units) Closing stock(units) 900 1,500 14,000 10,500 990 1650 Units sold 1250 1000 Required: Using the information above, you are required to prepare the following budgets for the month of January 2018: a) Production Budget for Lill and Lolo. b) Direct Material Purchase Budget for materials 001 and 002. c) Direct Labour Budget for Lili and…
Suds & Cuts is a local pet grooming shop owned by Collin Bark. Collin has prepared the following standard cost card for each dog bath given: Standard Quantity Standard Rate Standard Unit Cost Shampoo 1.2 oz. $ 0.20 per oz. $ 0.24 Water 10 gal. $ 0.04 per gal. 0.40 Direct labor 0.8 hr. $ 9.00 per hr. 7.20 During the month of July, Collin’s employees gave 350 baths. The actual results were 700 ounces of shampoo used (cost of $182.00), 6,000 gallons of water used (cost of $420), and labor costs for 240 hours (cost of $2,448). Required: 1. Calculate Suds & Cuts direct materials variances for both shampoo and water for the month of July. 2. Calculate Suds & Cuts direct labor variances for the month of July.
Combat Fire, Inc. manufactures steel cylinders and nozzles for two models of fire extinguishers: (1) a home fire extinguisher and (2) a commercial fire extinguisher. The home model is a high-volume (54,000 units), half-gallon cylinder that holds 2 1/2 pounds of multi-purpose dry chemical at 480 PSI. The commercial model is a low-volume (10,200 units), two-gallon cylinder that holds 10 pounds of multi-purpose dry chemical at 390 PSI. Both products require 1.5 hours of direct labor for completion. Therefore, total annual direct labor hours are 96,300 or [1.5 hours × (54,000 + 10,200)]. Estimated annual manufacturing overhead is $ 1,585,316. Thus, the predetermined overhead rate is $ 16.46 or ($ 1,585,316 ÷ 96,300) per direct labor hour. The direct materials cost per unit is $18.50 for the home model and $26.50 for the commercial model. The direct labor cost is $19 per unit for both the home and the commercial models.The company’s managers identified six activity cost pools and related…
John's Weed-B-Gone yard service sprays lawns to rid them of weeds. John mixes the two chemicals, Weed-X and Pest-O, in proportions depending on the climate and the particular weed problems of the season. A standard mix calls for a gallon of the mixture to combine equal parts of Weed-X and Pest-O. Weed-X has a standard cost of $10.00 per gallon and Pesto-O has a standard cost of $24.80 per gallon. Each gallon can treat 100 square yards of lawn. John expects to treat 534,000 square yards of lawn. For the past season, John treated 649,000 square yards. He used 4,200 gallons of Weed-X and 4,000 gallons of Pest-O. He paid a total of $35,000 for the Weed-X and $97,200 for the Pest-O. Requlred: a. Compute the materials price and efficiency variances for the season. b. Compute the materials mix and yield variances for the season. Complete this questlon by entering your answers In the tabs below. Required A Required B Compute the materials mix and yleld variances for the season. (Do not round…