Windward Chemicals produces a product using a process that allows for substitution between two materials, Sol-1 and Sol-2. The company has the following direct materials data for its product: Standard costs for one unit of output Sol-1 60 units of input at Sol-2 120 units of input at The company had the following results in June: Units of output produced 1,975 Materials purchased and used 132,450 237,000 Sol-1 Sol-2 $6.00 $9.00 Required: a. Compute materials price and efficiency variances. b. Compute materials mix and yield variances. Required A Required B units units at units at Complete this question by entering your answers in the tabs below. Materials price variance Materials efficiency variance Compute materials price and efficiency variances. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Sol-1 < Required A $5.70 $9.30 Sol-2 U U Required B > Total U U
Windward Chemicals produces a product using a process that allows for substitution between two materials, Sol-1 and Sol-2. The company has the following direct materials data for its product: Standard costs for one unit of output Sol-1 60 units of input at Sol-2 120 units of input at The company had the following results in June: Units of output produced 1,975 Materials purchased and used 132,450 237,000 Sol-1 Sol-2 $6.00 $9.00 Required: a. Compute materials price and efficiency variances. b. Compute materials mix and yield variances. Required A Required B units units at units at Complete this question by entering your answers in the tabs below. Materials price variance Materials efficiency variance Compute materials price and efficiency variances. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Sol-1 < Required A $5.70 $9.30 Sol-2 U U Required B > Total U U
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter9: Standard Costing: A Functional-based Control Approach
Section: Chapter Questions
Problem 30P: Algers Company produces dry fertilizer. At the beginning of the year, Algers had the following...
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