CALIFORNIA CORP. manufactures candles in various shapes, sizes, colors, and scents. Depending on the orders received, not all candles require the same amount of color, dye, or scent materials. Yields also vary, depending upon the usage of beeswax or synthetic wax. Standard ingredients for 1,000 Ibs. of candles are: Input: Beeswax Synthetic wax Colors 5. Standard Mix 200 lbs. Standard Cost per Pound P1.00 840 7 20 2.00 Scents 6.00 1.050 Ibs. 1.000 Ibs. Price variances are charged off at the time of purchase. During January, the company was busy Totals Standard output manufacturing red candles for Valentine's Day. Actual production then was: Input: Beeswax 4,100 13,800 2,200 60 20,160 Ibs. 18.500 Ibs. Synthetic wax Colors Scents Totals Actual output REQUIREMENT: Compute the materials mix variance and the materials yield variance. (Indicate whether each variance is favorable or unfavorable and round to three decimal places.)
CALIFORNIA CORP. manufactures candles in various shapes, sizes, colors, and scents. Depending on the orders received, not all candles require the same amount of color, dye, or scent materials. Yields also vary, depending upon the usage of beeswax or synthetic wax. Standard ingredients for 1,000 Ibs. of candles are: Input: Beeswax Synthetic wax Colors 5. Standard Mix 200 lbs. Standard Cost per Pound P1.00 840 7 20 2.00 Scents 6.00 1.050 Ibs. 1.000 Ibs. Price variances are charged off at the time of purchase. During January, the company was busy Totals Standard output manufacturing red candles for Valentine's Day. Actual production then was: Input: Beeswax 4,100 13,800 2,200 60 20,160 Ibs. 18.500 Ibs. Synthetic wax Colors Scents Totals Actual output REQUIREMENT: Compute the materials mix variance and the materials yield variance. (Indicate whether each variance is favorable or unfavorable and round to three decimal places.)
Chapter1: Financial Statements And Business Decisions
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