Calculate mix and yield variances

Assignment Help Cost Accounting

Reference no: EM132813000

Carat plc, a premium food manufacturer, is reviewing operations for a three-month period of 20X3. The company operates a standard marginal costing system and manufactures one product, ZP, for which the following standard revenue and cost data per unit of product is available:

Selling price $12.00

Direct material A 2.5 kg at $1.70 per kg

Direct material B 1.5 kg at $1.20 per kg

Direct labour 0.45 hrs at $6.00 per hour

Fixed production overheads for the three-month period were expected to be $62,500.

Actual data for the three-month period was as follows:

Sales and production 48,000 units of ZP were produced and sold for $580,800

Direct material A 21,951 kg were used at a cost of $200,000

Direct material B 67,200 kg were used at a cost of $84,000

Direct labour Employees worked for 18,900 hours, but 19,200 hours were paid at a cost of $117,120

Fixed production overheads $64,000

Budgeted sales for the three-month period were 50,000 units of Product ZP.

Requirements:

Problem 1: Calculate mix and yield variances and suggest possible explanations for

1. Sales variances

II. Materials variances

III. Labor variances

Reference no: EM132813000

Questions Cloud

Explain the view that communication may be tailored : Describe how the dimensions of social styles presented within the text allow project managers to communicate effectively with project team members.

Possibility of migration between cities : Consider the possibility of migration between cities. Suppose a region's workforce of 14 million is initially split equally between two cities, X and Y.

Breaking even for the urgent care center : In the short run it is enough to establish that your scale of operation is justified, but in the long run we have to cover our capital costs

Effectiveness of the policy or program you are evaluating : Describe how you will determine the evaluability and measure the effectiveness of the policy or program you are evaluating.

Calculate mix and yield variances : Calculate mix and yield variances and suggest possible explanations for Materials variances. Direct material A 21,951 kg were used at a cost of $200,000

ACC 2278 Computerized Accounting for Management Assignment : ACC 2278 Computerized Accounting for Management Assignment Help and Solution, Lethbridge College - Assessment Writing Service

What is the utility of the risky portfolio for the investor : A risky portfolio has an expected return of 20% and a standard deviation of 23%. What is the utility of the risky portfolio for the investor

Law and crime 1969 : law and order 1969 summarize the depicted event in your words (what happened?)

Calculate the net present worth of the project : Calculate the net present worth of the project and its internal rate of return, and determine whether the project should be accepted.

User Account

All Pages