Question
In: Accounting
ABC Co makes product X by mixing together two ingredients, A and B. The standard cost...
ABC Co makes product X by mixing together two ingredients, A and B. The standard cost card for one unit of X is as follows:
| Material | Kgs per unit | $ per kg | $ per unit |
| A | 2 | 1.50 | 3.00 |
| B | 5 | 1.75 | 8.75 |
| 11.75 |
The budgeted output for the March was 60 units. After one month of production, 50 units of X were produced from 110 kg of A and 225 kg of B.
1)Calculate the material mix variance
2)Calculate the materials usage variance.
3)Calculate the material yield variance
4)Which of the following factors would result in an adverse material usage variance in ABC Co?
(1) Using an inferior quality of material A or B
(2) Making changes to the production process
(3) Introducing increased quality controls resulting in more items of Product X being rejected.
5)
Which of the following factors would result in a material mix variance in ABC Co?
An inferior quality of material A or B is used
The cost of materials A or B changes
The selling price of Product X changes
The production manager in Ash Co deviates from the standard mix
Solutions
thank
you....
ekkarill92 answered 2 years agoRelated Solutions
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Mixing Department for September.
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29,000
units
Conversion
complete
70
%
Work-in-process
inventory Sept. 30
15,000
units
Conversion
complete
50
%
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Units completed
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$225,000.
The $225,000 consisted of $90,000 of materials cost and $135,000
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The units in beginning inventory were 40% complete with regard
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41,000
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Conversion complete
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Work-in-process inventory Sept. 30
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Material Q
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Units started into production in Sept.
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Units completed and transferred out ?
units
Costs
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Conversion
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B:
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$90,000
Total contribution margin
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37,800
Total fixed costs
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55,990
Profit
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Product B since it shows a loss and increase sales of Product A by
$29,600. Accompanying the sales increase will be a fixed cost
increase of $4,800....
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