Tiller Co. makes organic fertilizer sold in one pound bags for the gardener market. The standard...

Tiller Co. makes organic fertilizer sold in one pound bags for the gardener market. The standard material is 25 ounces per bag of assorted meal at a cost of $0.78 per ounce. Tipper Co. budgeted to make 65,000 bags but due to high demand, they ended up making 76,000 bags. They paid $42,000 for 60,000 ounces of meal and used all in production during the period.

What is their material cost variance for this period? Enter a favorable variance is a positive number and an unfavorable variance as a negative number

Expert Solution

Material Cost variance = $1,440,000 Favorable

.

Please check the answer and your data again if answer do not match because the standard date seems weird. Leave a comment below

Material Cost Variance
(	Standard Cost	-	Actual Cost	)
(	$ 1,482,000.00	-	$ 42,000.00	)
	1440000
	Variance		$ 1,440,000.00		Favourable-F

.

Standard DATA for		76000	Units
	Quantity (SQ)	Rate (SR)	Standard Cost
	[A]	[B]	[A x B]
Direct Material	( 25 ounces x 76000 Units)=1900000 ounces	$ 0.78	$ 1,482,000.00

.

Actual DATA for		76000	Units
	Quantity (AQ)	Rate (AR)	Actual Cost
Direct Material	60000	$ 0.70	$ 42,000.00

ekkarill92 answered 1 year ago

1. A company that makes organic fertilizer has supplied the following data: Bags produced and sold...

1. A company that makes organic fertilizer has supplied the following data: Bags produced and sold 240,000 Sales revenue $1,896,000 Variable manufacturing expense $804,000 Fixed manufacturing expense $520,000 Variable selling and administrative expense $180,000 Fixed selling and administrative expense $270,000 Net operating income $122,000 The company's margin of safety in units is closest to: Select one: a. 140,000 units b. 202,238 units c. 125,714 units d. 32,105 units 2. Davey Corporation is preparing its Manufacturing Overhead Budget for the fourth...

QUESTION 1 : Fertilizer is sold in bags. Weights of fertilizer in bags are normally distributed....

QUESTION 1 : Fertilizer is sold in bags. Weights of fertilizer in bags are normally distributed. The actual mean weight of a bag is found to be 20 kg. 27 bags were randomly selected, piled on a pallet and weighted. Those 27 bags had a mean of 20.87 kg and a standard deviation of 0.34251 kg. If the variance of weight is less than 0.1225 no adjustment is made. Otherwise, the machine is adjusted. Calculate a 99% confidence interval on...

Organic Dairy produces an organic butter that is sold by the pound. The production of the...

Organic Dairy produces an organic butter that is sold by the pound. The production of the butter begins in the Churning Department. Units in beginning Work in Process (WIP) inventory 75,000 units Units started during the month (all direct materials, including cream and salt, are added at the beginning of the churning process) 1,800,000 units Units in ending Work in Process (WIP) inventory (50% of the way through the process) 210,000 units Cost information is as follows: WIP - Churning...

Data collected on the yearly demand for 50-pound bags of fertilizer at Wallace Garden Supply are...

Data collected on the yearly demand for 50-pound bags of fertilizer at Wallace Garden Supply are shown in the following table. Compare the exponential smoothing with a smoothing constant of 0.3 and a three-year moving average forecasting method, which method do you think is better (use mean absolute deviation MAD for your analysis)? how to analyze each in excel and what determines which is best method? YEAR DEMAND FOR FERTILIZER (1,000s OF BAGS) 1 4 2 6 3 4...

A company produces and sells 3 types of organic fertilizer. A pound of Brand 1 earns...

A company produces and sells 3 types of organic fertilizer. A pound of Brand 1 earns a profit of $3 per pound. Brand II earns a profit of $4 per pound, and Brand III earns a profit of $3 per pound. 1 pound of Brand I requires 3 pounds of raw material and takes 2 hours of labor to produce it. 1 pound of Brand II requires 4 pounds of raw material and takes 3 hours of labor to produce...

1. Data collected on the yearly demand for 50-pound bags of fertilizer at Wallace Garden Supply...

1. Data collected on the yearly demand for 50-pound bags of fertilizer at Wallace Garden Supply are shown in the following table. Develop a three-year moving average to forecast sales. Then estimate demand again with a weighted moving average in which sales in the most recent year are giveo9n a weight of 2 and sales in the other two years are each given a weight of 1. Which method do you think is best? Year Demand for Fertilizer (1,000s of...

WholesomeWholesome Dairy produces an organic butter that is sold by the pound. The production of the...

WholesomeWholesome Dairy produces an organic butter that is sold by the pound. The production of the butter begins in the Churning Department. Data for the Churning Department for JanuaryJanuary follows: Units in beginning Work in Process (WIP) inventory 90,000 units Units started during the month (all direct materials, including cream and salt, are added at the beginning of the churning process) 1,900,000 units Units in ending Work in Process (WIP) inventory (50% of the way through the process) 140,000 units...

Home Depot sells 50-pound bags of Scott’s Turf Builder fertilizer in its 2,200 retail stores in...

Home Depot sells 50-pound bags of Scott’s Turf Builder fertilizer in its 2,200 retail stores in the United States. The numbers of bags of the fertilizer sold at a certain Home Depot store for a random sample of days are provided below: 65, 55, 96, 39, 74, 55, 49, 116, 63, 81, 55, 57, 39, 44, 36, 80 Answer the questions below using this data. NOTE: Be certain to check your data entry. You will lose a considerable number of...

HawthornHawthorn Foods processes bags of organic frozen fruits sold at specialty grocery store. The company allocates...

HawthornHawthorn Foods processes bags of organic frozen fruits sold at specialty grocery store. The company allocates manufacturing overhead based on direct labor hours. HawthornHawthorn has budgeted fixed manufacturing overhead for the year to be $ 629 comma 000$629,000. The predetermined fixed manufacturing overhead rate is $ 16.40$16.40 per direct laborhour, while the standard variable manufacturing overhead rate is $ 0.50$0.50 per direct labor hour. The direct labor standard for each case is one minus quarterone−quarter (0.250.25) of an hour. The...

How much organic fertilizer is obtained from bovine and ovine skin? (one bovine and one ovine)

Question