Magno Cereal Corporation uses a standard cost system to collect costs related to the production of its "crunchy pickle" cereal. The materials standard for each batch of cereal produced is 1.4 pounds of pickles at a standard cost of $3.00 per pound. During the month of August, Magno purchased 78,000 pounds of pickles at a total cost of $253,500. Magno used all of these pickles to produce 60,000 batches of cereal. What is Magno's materials quantity variance for the month of August?
Magno Cereal Corporation uses a standard cost system to collect costs related to the production of its "crunchy pickle" cereal. The materials standard for each batch of cereal produced is 1.4 pounds of pickles at a standard cost of $3.00 per pound. During the month of August, Magno purchased 78,000 pounds of pickles at a total cost of $253,500. Magno used all of these pickles to produce 60,000 batches of cereal. What is Magno's materials quantity variance for the month of August?
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 4PA: April Industries employs a standard costing system in the manufacturing of its sole product, a park...
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