Compute the standard quantity of materials allowed per

Reference no: EM13481908

The cost accountant for blue pharmaceuticals has informed youthat the company's materials quantity variance for the drugallegro was exactly equal to its materials price variance for theyear. The company's normal level of production is 50 batchesof Allegro per year. However, due to uncertainties regarding foundation funding, it produced only 25 batches during the currentyear. Other cost information regarding allegro's directmaterials is as follows:

Standard price par gram ofmaterial...............................................................$60

Actual kilograms purchased and used during theyear..................................100kg

Actual cost of materials purchased during theperiod...............................$6,000,000

Number of grams perkilogram...............................................................1,000grams

a. Compute blue's materials price variance.

b. Compute the standard quantity of materials allowed per batch of allegro produced.

c. Why would you not expectblue to have a large materials quantity variance?

Reference no: EM13481908

Questions Cloud

Calculate the cost of goods sold and the cost of ending : inventory costing average costbordeaux company has the following information related to purchases and sales of one of

Burke interior decorators issued a 60-day 9 note for 15000 : burke interior decorators issued a 60-day 9 note for 15000 dated march 3 to loree fur- niture company on

You are an employee of a wealth management company you are : you are an employee of a wealth management company you are auditing the chart of account for clent. you notice that all

Private markets are those like the nyse where transactions : q1. private markets are those like the nyse where transactions are handled by members of the organization while public

Compute the standard quantity of materials allowed per : the cost accountant for blue pharmaceuticals has informed youthat the companys materials quantity variance for the

Compute 2 breakeven point in units of product 2 break even : a company produces only one product. normal capacity is 0000units per year and the unit sales price is rs.5 relevant

What mechanisms do people use and what mechanisms could the : what mechanisms do people use and what mechanisms could the prisoners of war have used to resist a change in their

Explain whether each of the following would be expensed on : explain whether each of the following would be expensed on the income statement in2007 or in some later year and why.a.

Cardinals corporation purchased a computer on december 31 : cardinals corporation purchased a computer on december 31 2013 for 274365 paying 78390 down and agreeing to pay the

User Account

All Pages