Compute the compnays material price variance compute the

Reference no: EM13482656

The cost accountant for a drug company has informed you that the company's materials quality variance for a Allegra was exactly equal to its materials price variance for the year. The company's normal level of prodcution is 50 batches of Allegra per year. However due to uncertanties regarding foundation funding, it produced only 25 batches during the currnet year. Other cost information regarding Allegra's direct materials are as follows:

Standard price per gram of material..........................................$60
Actual kilograms purchased & used drungthe year................100 kg
Actual cost of materials purchased duringthe year..................$6,000,000
Number of grams perkilogram.................................................. 1,00grams

a. Compute the compnay's material price variance
b. Compute the standard quality of materials allowed per batch of Allegra produced.
c. Why would you not expect the company to have a large quantity variance

Reference no: EM13482656

Questions Cloud

The following data were accumulated for use in reconciling : the following data were accumulated for use in reconciling thebank account of spectrum co. for julya. cash balance

Present the journal entries to record a the labor cost : 1. a summary of the time tickets for august followsdescription amount description amountjob no. 321 11000 job no. 342

The accounts wereclosed ali taking up all the shares of the : ali and ahmed carrying business separately ascontractors jointly take up the work of constructing a research complex of

If a company purchased a tractor trailer for 98000 the : if a company purchased a tractor trailer for 98000. the company uses the units-of-activity method for depreciating its

Compute the compnays material price variance compute the : the cost accountant for a drug company has informed you that the companys materials quality variance for a allegra was

Im using a accounting 1 book by warren reeve duchac my : im using a accounting 1 book by warren reeve duchac my question is how do i journal the following entries on the

Youre trying to save to buy a new 210000 ferrari you have : youre trying to save to buy a new 210000 ferrari. you have 50000 today that can be invested at your bank. the bank pays

Eller company is preparing its master budget for 2008 : eller company is preparing itsmaster budget for 2008. relevant data pertaining to its salesbudget are as followssales

Flip earns a salary of 7500 per month during the year fica : flip earns a salary of 7500 per month during the year. fica taxes are 8 on the first 100000 of gross earnings. federal

User Account

All Pages