Gumbo Inc. is a manufacturer of chewing gum that uses a standard cost system. Standard product and cost information to produce 1000 Kg of chewing gum follow Quantity Kg $ Price / Kg Gum base 800 0.25 Corn syrup 200 0.40 Sugar 200 0.10 Material records indicate for the Month of May: Material Beginning Inventory Kg Gum base 10,000 Corn Syrup 12,000 Sugar 15,000 The actually finished production for May is 200,000 kg. Required: Determine the: a. Materials price variance b. Materials usage variance c. Materials mix variance d. Materials yield variance Purchases Kg 162,000 @$0.24 30,000 @$0.42 32,000 @$0.11 Ending Inventory Kg 15,000 4,000 11,000

Gumbo Inc. is a manufacturer of chewing gum that uses a standard cost system. Standard product and cost information to produce 1000 Kg of chewing gum follow Quantity Kg $ Price / Kg Gum base 800 0.25 Corn syrup 200 0.40 Sugar 200 0.10 Material records indicate for the Month of May: Material Beginning Inventory Kg Gum base 10,000 Corn Syrup 12,000 Sugar 15,000 The actually finished production for May is 200,000 kg. Required: Determine the: a. Materials price variance b. Materials usage variance c. Materials mix variance d. Materials yield variance Purchases Kg 162,000 @$0.24 30,000 @$0.42 32,000 @$0.11 Ending Inventory Kg 15,000 4,000 11,000

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 2CMA: Chassen Company, a cracker and cookie manufacturer, has the following unit costs for the month of...

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