5.CALIFORNIA CORP. manufactures candles in various shapes, sizes, colors, and scents. Depending onthe orders received, not all candles require the same amount of color, dye, or scent materials. Yieldsalso vary, depending upon the usage of beeswax or synthetic wax. Standard ingredients for 1,000Ibs. of candles are:Standard Cost per PoundP1.00.202.00Input:BeeswaxStandard Mix200Ibs.Synthetic waxColors8407ScentsTotals6.001.050 Ibs.Standard output1,000IbsPrice variances are charged off at the time of purchase.manufacturing red candles for Valentine's Day. Actual production then was:During January, the company was busyInput:Beeswax4,10013,8002,2006020,160 Ibs.18.500 lbs.REQUIREMENT: Compute the materials mix variance and the materials yield variance.whether each variance is favorable or unfavorable and round to three decimal places.)Synthetic waxColorsScentsTotalsActual output(Indicate

Answered: Image /qna-images/answer/00701cfb-0d63-4214-8485-3121e1f12f23.jpg

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.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Snapware Systems produces commercial strength cleansing supplies. Two of its main products are window cleaner that uses ammonia, and floor cleaner that uses bleach. Information for the most recent period follows: Product Names Window Cleaner (ammonia) Floor Cleaner (bleach) Direct materials information: Standard ounces per unit 16 oz. 24 oz. Standard price per ounce $0.75 ? Actual quantity used per unit 20 oz. 22 oz. Actual price paid for material $1.00 $0.90 Actual quantity purchased and used 1,500 oz. 2,800 oz.. Price variance ? $300 U Quantity variance $1,500 U ? Total direct materials variance ? $678 F Number of units produced 500 600 What is the standard price for bleach? Select one: a. $0.88/oz. b. $1.09/oz. c. $1.14/oz. d. $0.79/oz. e. $0.92/oz.
Chypre, Inc., produces a cologne mist using a solvent mix (water and pure alcohol) and aromatic compounds (the scent base) that it sells to other companies for bottling and sale to consumers. Chypre developed the following standard cost sheet: Direct Material Mix Mix Proportion SP Standard Cost Solvent mix 855 gallons 0.95 $5.55 $4745.25 Aromatic compounds 45 0.05 8080.00 363600.00 Total 900 gallons $368,345.25 Yield 828 gallons On May 2, Chypre produced a batch of 1,150 gallons with the following actual results: Direct Material Actual Mix Solvent mix 1,086.75 gallons Aromatic compounds 63.25 Total 1,150 gallons Yield 1,015 gallons Required: Instructions for parts 3 and 4: If a variance is zero, enter "0" and select "Not applicable" from the drop down box. 1. Calculate the yield ratio. If required, round your answer to two decimal places.fill in the blank 1 2. Calculate the standard cost per unit of the yield. If required,…
Chypre, Ic., produces a cologne mist using a solvent mix (water and pure alcohol) and aro- matic compounds (the scent base) that it sells to other companies for bottling and sale to con- sumers. Chypre developed the following standard cost sheet: Direct Material Mix Proportion SP Mix Standard Cost Solvent mix 760 gallons 0.95 5.27 S 4,005.20 Aromatic compounds Total 40 0.05 8,000.00 320,000.00 800 gallons 720 gallons S324,005.20 Yield On May 2, Chypre produced a batch of 1,000 gallons with the following actual results: Direct Material Actual Mix Solvent mix 945 gallons Aromatic compounds 55 1,000 gallons 880 gallons Total Yield Required: 1. Calculate the yield ratio. 2. Caleulate the standard cost per unit of the yield. (Round to the nearest cent.) 3. Calculate the direct materials yield variance. (Round to the nearest cent.) 4. Calculate the direct materials mix variance. (Round to the nearest cent.)
Fresh Company produces a well-known perfume. The standard manufacturing cost of theperfume is described by the following standard cost sheet:Direct materials:Liquids (5 oz. @ $ 0.25) $1.25Bottles (1 @ RM 0.05) $ 0.05Direct Labor (0.25 @ $13.00) $ 3.25Variable overhead (0.25 @ $ 5) $1.25Fixed overhead (0.25 @ $10.00) $ 2.50Standard cost per unit $ 8.30Management has decided to investigate only those variances that exceed the lesser of 10% ofthe standard cost for each category or $22,000. During the past quarter, a total of 300,000four-ounce bottles of perfume was produced. Descriptions of actual activity for the quarter follow:a. A total of 1.2 million ounces of liquids was purchased, mixed, and processed. The pricepaid per ounce averaged $0.27b. Exactly 280,000 bottles were used. The price paid for each bottle was $ 0.055.c. Direct labor hours totaled 50,000 with a total cost of $ 650,000d. Variable overhead cost totaled $ 242,000e. Fixed overhead cost was $ 600,000Normal production…
Rosehill Co. manufactures two types of toilet paper: Ultra-strong and Ultra-soft. Because of a recent shortage of chlorine-based bleach, a key ingredient needed for the two products, the company has to decide the optimal amount of each product to produce. Information related to the two products that use chlorine-based bleach are shown below: Ultra-strong Ultra-soft Selling price per case $100 $96 Variable cost per case $40 $44 Chlorine-based bleach required per case (in liters) 10 8 Maximum monthly demand (in cases) 500 700 Assume that Rosehill Co. only has 7,200 liters of Chlorine-based bleach available next month. To maximize the company’s contribution margin next month, how many cases of Ultra-strong and how many cases of Ultra-soft the company should produce? Multiple Choice a)300 cases of Ultra-strong and 400 cases of Ultra-soft b)500 cases of Ultra-strong and 275 cases of Ultra-soft c)500 cases of Ultra-strong and 700 cases…
Snow, Inc. makes three kinds of snowboards, but it has limited number of machine hours available to make them. Product line data are as follows: Wood Plastic Graphite Machine hours per unit 1.25 1.0 1.5 Selling price per unit P100 P120 P200 Variable mfg. cost per unit 45 50 100 Variable selling cost per unit 15 26 36 In what order should the snowboard product lines be produced? Wood, Plastic, then Graphite Plastic, Graphite, then Wood Graphite, Wood, then Plastic none of the above Group of answer choices 1 2 3 4
ABC and CVP Analysis: Multiple Products Good Scent, Inc., produces two colognes: Rose and Violet. Of the two, Rose is more popular. Data concerning the two products follow: Rose Violet Expected sales (in cases) 50,000 10,000 Selling price per case $100 $80 Direct labor hours 36,000 6,000 Machine hours 10,000 3,000 Receiving orders 50 25 Packing orders 100 50 Material cost per case $50 $43 Direct labor cost per case $10 $7 The company uses a conventional costing system and assigns overhead costs to products using direct labor hours. Annual overhead costs follow. They are classified as fixed or variable with respect to direct labor hours. Fixed Variable Direct labor benefits $          —   $200,000 Machine costs 200,000* 262,000 Receiving department 225,000   — Packing department 125,000   —    Total costs $550,000   $462,000 * All depreciation Required: 1. Using the conventional approach, compute the number of cases of Rose and the…
ABC and CVP Analysis: Multiple Products Good Scent, Inc., produces two colognes: Rose and Violet. Of the two, Rose is more popular. Data concerning the two products follow: Rose Violet Expected sales (in cases) 48,500 9,700 Selling price per case $98 $83 Direct labor hours 32,000 6,000 Machine hours 10,700 3,000 Receiving orders 50 24 Packing orders 96 50 Material cost per case $51 $45 Direct labor cost per case $11 $8 The company uses a conventional costing system and assigns overhead costs to products using direct labor hours. Annual overhead costs follow. They are classified as fixed or variable with respect to direct labor hours. Fixed Variable Direct labor benefits $          —   $163,400 Machine costs 211,000* 216,600 Receiving department 233,500   — Packing department 112,500   —    Total costs $557,000   $380,000 * All depreciation Required: 1. Using the conventional approach, compute the number of cases of Rose and the…
Johnston Adhesives Company makes three widely used industrial adhesives: A101, A204, and B216. Sales and production information for each of the three adhesives are shown in the following table. Most of Johnston’s customers ask for a special blend of the three products, which improves heat-resistance. The additional separable processing requires additional time and materials, and the price is increased accordingly, as shown in the table. Assume that Johnston produces only for specific customer orders, so there is no beginning or ending inventory. Assume also that all of Johnston’s customers requested the heat-resistant version of the products so that all production required additional separable processing. Total joint cost for the three products is $3,411,000. A101 A204 B216 Gallons sold 240,000   240,000 178,000 Final sales price per gallon $ 13 $ 6 $ 11 Price at split-off 10 3 7 Separable processing cost $ 563,000 $ 81,000 $ 623,000 Calculate the unit product cost…
Container Solutions produces plastic storage bins for household storage needs. 1(Click the icon to view additional information.) Sales prices and variable costs are as follows: 2(Click the icon to view the costs.) Read the requirements3. Requirement 1. Which product should Container Solutions emphasize? Why? Complete the product mix analysis to determine the contribution margin per machine hour. Container Solutions Product Mix Analysis Regular Large Sales price per unit Variable cost per unit Contribution margin per unit Units per machine hour × × Contribution margin per machine hour Which product should Container Solutions emphasize? Why? Container Solutions should emphasize the production of (1) because this product has the higher (2) Requirement 2. To maximize profits, how many of each size bin…
Good Scent, Inc., produces two colognes: Rose and Violet. Of the two, Rose is more popular. Data concerning the two products follow: Rose Violet Expected sales (in cases) 58,000 11,600 Selling price per case $102 $80 Direct labor hours 32,650 6,100 Machine hours 10,850 2,800 Receiving orders 48 28 Packing orders 96 45 Material cost per case $49 $42 Direct labor cost per case $9 $9 The company uses a conventional costing system and assigns overhead costs to products using direct labor hours. Annual overhead costs follow. They are classified as fixed or variable with respect to direct labor hours. Fixed Variable Direct labor benefits $ — $193,750 Machine costs 181,000* 232,500 Receiving department 227,500 — Packing department 111,000 — Total costs $519,500 $426,250 * All depreciation Required: 1. Using the conventional approach, compute the number of cases of Rose and the number of cases of Violet that must be sold…
Your Company manufactures and sells three products that all use a liquid compound as an ingredient. The high demand for all three of these products exceeds the supply of liquid compound that is available from suppliers and only 6,025 ounces are available. Information related to the three products is below: Products A B Demand in units 1,500 1,000 425 Selling price per unit Variable costs per unit $120 $100 $200 $84 $70 $130 Ounces per unit 3 2 5 What is the maximum annual net operating income that Your Company can make each year from these three products? Do not use $ in your answer.