I need the answer as soon as possible The standard material cost for a normal mix of one tonne of chemical Xing basedon:ChemicalUsagePrice per Kg.A240 Kg.9.12400 Kg.C640 Kg.10During a month, 6.25 tonnes of X vwere produced from:ChemicalConsumption (Tonnes) Cost ()A1.611,2002.430,000В4.547,250CRequiredAnalyse the variances

When the actual cost differs from the budgeted cost, we calculate the variances to find out the…

Answered: Analyse the variances

Business

Accounting

Analyse the variances

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 1BE: Direct materials variances Bellingham Company produces a product that requires 2.5 standard pounds...

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Kavallia Company set a standard cost for one item at 328,000; allowable deviation is 14,500. Actual costs for the past six months are as follows: Required: 1. Calculate the variance from standard for each month. Which months should be investigated? 2. What if the company uses a two-part rule for investigating variances? The allowable deviation is the lesser of 4 percent of the standard amount or 14,500. Now which months should be investigated?
The production cost for a waterproof phone case is $7 per unit and fixed costs are $23,000 per month. How much is the favorable or unfavorable variance If 5,500 units were produced for a total of $61,000?
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The standard cost of a chemical mix is as follows-4 tons of material P at Rs. 20 per ton6 tons of material Q at Rs. 30 per tonActual cost for a period is as under-4.5 tons of material P at Rs. 15 per ton5.5 tons of material Q at Rs. 34 per tonActual yield is 5.5 tons.Compute all material variance. Also show workings.
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Given the following information: 2a) the standard material costs of finished product X are as follows 2kg raw material Y @R10 per kg Actual information Purchases of raw material Y 1000kg @R9, 50 per kg Issues of raw material Y 600 kg Units of product X manufactured 290 units Calculate the following variances in respect of material i) Purchase price variance ( 5) ii) Issue price variance (5) iii) Quantity variance (5) iv) Total material variance if an issue price variance is used (5)
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