Standard costing and variance

Assignment Help Financial Accounting

Reference no: EM13378280

Standard Costing and Variance Analysis

Chemical Manufacturing Ltd makes a cleaning product known as SuperClean by mixing three materials: A, B, and C. The standard material mix and cost to produce 9 litres of SuperClean is as follows:

5 litres of material A at $17.00 per litre	$85.00
3 litres of material B at $15.00 per litre	$45.00
2 litres of material C at $12.00 per litre	$24.00
	$154.00

A standard loss of 10% of input is expected to occur.

Actual inputs used and costs incurred were as follows:

53,000 litres of material A at $16.90 per litre	$895,700
28,000 litres of material B at $15.30 per litre	$428,400
19,000 litres of material C at $12.20 per litre	$ 231,800
100,000 litres	$1,555,900

The actual output for the period was 92,700 litres of SuperClean.

Required:

1. Calculate the price and mix variance for each material used.

2. Calculate the total material yield and total material usage variance.

3. Comment on your calculations to help explain what has happened to the material yield variance.

Reference no: EM13378280

Questions Cloud

Measuring : measuring

Decentralisation and segment reportingnbspnbspnbsp : decentralisation and segment reportingnbspnbspnbsp nbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbsp sparky

Externalities-analysis and policy design suppose that in a : externalities-analysis and policy design suppose that in a competitive market demand is given by the equation p 600 -

Transfer : transfer pricingnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbsp nbspindustrial resources company has two

Standard costing and variance : standard costing and variance analysisnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbsp chemical

Assume that the combined consumer goods capital goods : assume that the combined consumer goods capital goods values for points a b and c are 20 billion 40 billion and 38

Customer profitability analysisomega printers ltd handles : customer profitability analysisomega printers ltd handles printing jobs. joe patterson finds that serving some clients

A firm has production function fk l squarerootkl in the : a firm has production function fk l squarerootkl. in the short run the rm has capital k 400 this cannot be changed in

At the end of each year a self-employed person deposits : at the end of each year a self-employed person deposits 1500 in a retirement account that earns 10 percent annually.a

User Account

All Pages