The quantities of chemicals purchased and used during the current production period are shown in the schedule below. A total of 149 batches of Charger Power were manufactured during the current production period. The controller of BE has determined its costs and chemical usage variations at the end of the production period. Chemical Purchased Echol Protex Benz CT-40 What is the total material yield variance? Quantity Total Quantity Cost Used 25,200 $5,500 28,000 13,200 6,375 14,280 40,200 5,975 39,200 7,700 2,355 8,540 86,300 90,020 Multiple Choice OO O O $429.50. $139.50. $568.50. $415.00.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
The Becton Enterprises (BE) produces a gasoline additive, Charger Power. This product increases engine efficiency and improves gasoline mileage by creating a more complete burn in the combustion process. Careful controls are required during the production process to
ensure that the proper mix of input chemicals is achieved and that evaporation is controlled. Loss of output and efficiency may result if the controls are not effective.
The standard cost of producing a 500-liter batch of Charger Power is $135. The standard materials mix and related standard cost of each chemical used in a 500-liter batch are:
Std cost
per
liter
$0.200
0.425
0.150
0.300
Std input
Chemical quantity
Echol
200
Protex
Benz
CT-40
100
250
50
600
The quantities of chemicals purchased and used during the current production period are shown in the schedule below. A total of 149 batches of Charger Power were manufactured during the current production period. The controller of BE has determined its costs and
chemical usage variations at the end of the production period.
Quantity Total
Cost
25, 200 $5,500
6,375
5,975 39,200
2,355
8,540
90,020
Chemical Purchased
Echol
Protex
Benz
CT-40
13,200
40,200
7,700
86,300
What is the total material yield variance?
Multiple Choice
$429.50.
$139.50.
Total
cost
$40.00
42.50
37.50
15.00
$135.00
$568.50.
$415.00.
Quantity
Used
28,000
14,280
Transcribed Image Text:The Becton Enterprises (BE) produces a gasoline additive, Charger Power. This product increases engine efficiency and improves gasoline mileage by creating a more complete burn in the combustion process. Careful controls are required during the production process to ensure that the proper mix of input chemicals is achieved and that evaporation is controlled. Loss of output and efficiency may result if the controls are not effective. The standard cost of producing a 500-liter batch of Charger Power is $135. The standard materials mix and related standard cost of each chemical used in a 500-liter batch are: Std cost per liter $0.200 0.425 0.150 0.300 Std input Chemical quantity Echol 200 Protex Benz CT-40 100 250 50 600 The quantities of chemicals purchased and used during the current production period are shown in the schedule below. A total of 149 batches of Charger Power were manufactured during the current production period. The controller of BE has determined its costs and chemical usage variations at the end of the production period. Quantity Total Cost 25, 200 $5,500 6,375 5,975 39,200 2,355 8,540 90,020 Chemical Purchased Echol Protex Benz CT-40 13,200 40,200 7,700 86,300 What is the total material yield variance? Multiple Choice $429.50. $139.50. Total cost $40.00 42.50 37.50 15.00 $135.00 $568.50. $415.00. Quantity Used 28,000 14,280
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 2 images

Blurred answer
Knowledge Booster
Risk Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education