operations:IngredientsInputActual QTYGrams45,000125,00030,000200,000Actual Unit PriceActual Total costP180,000P375,000P180,000P735,000P4YP3P6TotalBBB produced 190 kilos of face powder in 2020:Required:4. Materials yield variance Problem 12: MIX AND YIELD VARIANCEBBB produced face powder. BBB has in its budget the following standard forone kilo of face powder:IngredientsInputStandard QTYGramsStandard UnitStandard TotalPrice200700costP600P3YP4P2,800100P5P500Total1,000P3,900

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Description: operations:IngredientsInputActual QTYGrams45,000125,00030,000200,000Actual Unit PriceActual Total costP180,000P375,000P180,000P735,000P4YP3P6TotalBBB produced 190 kilos of face powder in 2020:Required:4. Materials yield variance Problem 12: MIX AND

Material yield variance is the type of variance which incurs when the actual production is less or…

Business

Accounting

Problem 12: MIX AND YIELD VARIANCE BBB produced face powder. BBB has in its budget the following standard for one kilo of face powder: Ingredients Input Standard QTY Grams Standard Unit Price P3 Standard Total cost 200 P600 P2,800 P500 P3,900 Y 700 P4 100 1,000 P5 Total

Problem 12: MIX AND YIELD VARIANCE BBB produced face powder. BBB has in its budget the following standard for one kilo of face powder: Ingredients Input Standard QTY Grams Standard Unit Price P3 Standard Total cost 200 P600 P2,800 P500 P3,900 Y 700 P4 100 1,000 P5 Total

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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Direct materials variances Bellingham Company produces a product that requires 2.5 standard pounds per unit. The standard price is 3.75 per pound. If 15,000 units used 36,000 pounds, which were purchased at 4.00 per pound, what is the direct materials (A) price variance, (B) quantity variance, and (C) cost variance?
Variances Refer to Cornerstone Exercise 9.6. Required: 1. Calculate the variable overhead spending variance using the formula approach. (If you compute the actual variable overhead rate, carry your computations out to five significant digits and round the variance to the nearest dollar.) 2. Calculate the variable overhead efficiency variance using the formula approach. 3. Calculate the variable overhead spending variance and variable overhead efficiency variance using the three-pronged graphical approach. 4. What if 26,100 direct labor hours were actually worked in February? What impact would that have had on the variable overhead spending variance? On the variable overhead efficiency variance? Standish Company manufactures consumer products and provided the following information for the month of February: Required: 1. Calculate the fixed overhead spending variance using the formula approach. 2. Calculate the volume variance using the formula approach. 3. Calculate the fixed overhead spending variance and volume variance using the three-pronged graphical approach. 4. What if 129,600 units had actually been produced in February? What impact would that have had on the fixed overhead spending variance? On the volume variance?
Titanium Blades refines titanium for use in all brands of razor blades. It prepared a static budget for the sales of 5,000 units. These variances were observed: Determine the static budget and use the information to prepare a flexible budget and analysis for the 6,000 units actually sold.
Refer to Cornerstone Exercise 9.9. Required: 1. Calculate the yield ratio based on the standard amounts given. 2. Calculate the standard cost per pound of the yield (rounded to the nearest cent). 3. Calculate the standard yield for actual input of 2,000 pounds of direct materials. 4. Calculate the yield variance. 5. What if the total 2,000 pounds of direct materials put into process resulted in a yield of 825 pizzas? How would that affect the yield variance? Mangia Pizza Company makes frozen pizzas that are sold through grocery stores. Mangia uses two types of direct labor: machine operators and packers. Mangia developed the following standard mix for spreading on premade pizza shells to produce 16 giant-size sausage pizzas. Mangias recent batch (designed to produce 400 pizzas) used 400 direct labor hours. Of the total, 160 were for machine operators, and the remaining 240 hours were for packers. The actual yield was 780 pizzas. Required: 1. Calculate the standard mix (SM) in hours for machine operators and for packers. 2. Calculate the mix variance. 3. Calculate the actual proportion of hours worked by machine operators and by packers. Use these results to explain the direction (favorable or unfavorable) of the mix variance. 4. What if of the total 400 direct labor hours worked, 200 were worked by each type of direct labor? How would that affect the mix variance?
Sales Variances; Flexible-Budget Variance; Review of Chapter 14 Robinson Company hastwo products, A and B. Robinson’s budget for August follows:Master BudgetProduct A Product BSales $240,000 $300,000Variable cost 140,000 180,000Contribution margin $100,000 $120,000Fixed cost 80,000 40,000Operating income $ 20,000 $ 80,000Selling price $ 120 $ 50On September l, these operating results for August were reported:Operating ResultsProduct A Product BSales $180,400 $341,120Variable cost 106,600 216,480Contribution margin $ 73,800 $124,640Fixed cost 80,000 40,000Operating income $ (6,200) $ 84,640Units sold 1,640 6,560Required1. For each product, determine the following variances measured in dollars of contribution margin:a. Flexible-budget variance.b. Sales volume variance.c. Sales quantity variance.d. Sales mix variance.2. Explain the amount of the flexible-budget variance using the amounts of the selling price and variablecost variances.
The fixed budget for 20,800 units of production shows sales of $582,400; variable costs of $62,400; and fixed costs of $142,000. QS 21-4 (Algo) Flexible budget performance report LO P1 The company’s actual sales were 27,200 units at $713,600. Actual variable costs were $113,800 and actual fixed costs were $136,000. Prepare a flexible budget performance report. Indicate whether each variance is favorable or unfavorable. (Indicate the effect of each variance by selecting favorable, unfavorable, or no varian
Self-Study Problem 14-1 Sales Volume and Flexible-Budget (FB) Variances/JIT Manufacturing [The following information applies to the questions displayed below.] Solid Box Fabrications manufactures boxes for workstations. The firm’s standard cost sheet prior to October of the current year and actual results for October are as follows: Budget Information Standard Price and Variable Costs per Unit Fixed Costs Actual Results October Units 9,700 Sales$50.00 $563,000 Variable costs: Direct materials 5 pounds at $2.50 per pound$12.40 51,400 lb*× $3 =$154,200 Direct labor 0.50 hour at $14.40 per hour 7.20 5,300 hr × $17.20 = 91,160 Manufacturing overhead 2.00 19,000 Selling and administrative 5.00 45,000 Total variable costs$26.60 $309,360 Contribution margin$23.40 $253,640 Fixed costs: Manufacturing (factory) overhead $50,000 $55,000 Selling and administrative 20,000 24,000 Total fixed costs $70,000 $79,000 Operating income $174,640 *Assume that pounds purchased = pounds issued to production…
Data Table AC × AQ SC × AQ SC × SQ $0.65 per pounds $0.30 per pounds $0.30 per pound × × × 7,600 pounds 7,600 pounds 7,200 pounds $4,940 $2,280 $2,160 Cost Efficiency Variance Variance $2,660 U $120 U . Record Smithson's direct materials journal entries. Assume purchases were made on account. 2. Explain what management will do with this variance information.
9) Given data provided determine the DM price, quantity and total variances. Actual: 680,000 lbs. at $3.10 per pound Standard 640,000 lbs. at $3.50 per pound `
3. The following information is available from the KANSAN CORP.: Actual factory O/H P15,000 Fixed O/H expenses, actual P7,200 Fixed O/H expenses, budgeted P7,000 Actual hours 3,500 Standard hours 3,800 Variable O/H rate per DLH P2.50 Assuming that Tyro uses a three-way analysis of O/H variances, what is the spending variance?
Question I – Variances LAR Chemical Company manufactures a wide variety of chemical compounds and liquids for industrial uses. The standard mix for November’s production of 40,000 litres of Product “A” and the budgeted costs for that mix, are as follows: Liquid Chemical Quantity (in litres) Cost (per litre) Total Cost Maxan Xulon Cralyn 8,000 24,000 18,000 $2.00 $.75 $1.00 $16,000 18,000 18,000 The actual quantities of direct materials and the cost of the materials placed in production during November to product Product “A” were as follows (all materials purchased were used): Liquid Chemical Quantity (in litres) Total Cost Maxan Xulon Cralyn 8,480 25,200 18,520 52,200 $17,384 17,640 16,686 $51,710 A total of 40,000 good litres of Product “A” were produced during November. REQUIRED: Calculate the direct materials efficiency, mix, and yield variances for each raw material.
Titanium Blades refines titanium for use in all brands of razor blades. It prepared a static budget for the sales of 5,000 units. The following variances were observed: Actual Results Variances Units Sales $162,000 $27,000 Favorable Variable Expenses 77,900 12,900 Unfavorable Fixed Expenses 80,200 200 Unfavorable Net Income (loss) $3,900 $13,900 Unfavorable Determine the static budget and use the information to prepare a flexible budget and analysis for the 6,000 units actually sold. If no effect, select "No Effect" and leave the amount boxes blank. For those boxes in which you must enter negative numbers use a minus sign. (Example: -300). Static budget Flexible budget Actual Results Variances Units fill in the blank 1 fill in the blank 2 Sales $fill in the blank 3 $fill in the blank 4 $fill in the blank 5 $fill in the blank 6 Variable Expenses fill in the blank 8 fill in the blank 9 fill in the blank 10 fill in the blank 11 Fixed Expenses…