John’s Weed-B-Gone yard service sprays lawns to rid them of weeds. John mixes th
ID: 2474387 • Letter: J
Question
John’s Weed-B-Gone yard service sprays lawns to rid them of weeds. John mixes the two chemicals, Weed-X and Pest-O, in proportions depending on the climate and the particular weed problems of the season. A standard mix calls for a gallon of the mixture to combine equal parts of Weed-X and Pest-O. Weed-X has a standard cost of $8.80 per gallon and Pesto-O has a standard cost of $20.80 per gallon. Each gallon can treat 100 square yards of lawn. John expects to treat 980,000 square yards of lawn.
For the past season, John treated 1,160,000 square yards. He used 6,760 gallons of Weed-X and 5,360 gallons of Pest-O. He paid a total of $57,798 for the Weed-X and $116,848 for the Pest-O.
Compute the materials price and efficiency variances for the season. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Do not round your intermediate calculations. Round "Efficiency variances" value to 2 decimal places.)
Compute the materials mix and yield variances for the season. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).Do not round your intermediate calculations. Round your answers to 2 decimal places.)
John’s Weed-B-Gone yard service sprays lawns to rid them of weeds. John mixes the two chemicals, Weed-X and Pest-O, in proportions depending on the climate and the particular weed problems of the season. A standard mix calls for a gallon of the mixture to combine equal parts of Weed-X and Pest-O. Weed-X has a standard cost of $8.80 per gallon and Pesto-O has a standard cost of $20.80 per gallon. Each gallon can treat 100 square yards of lawn. John expects to treat 980,000 square yards of lawn.
Explanation / Answer
a. Materials price and efficiency variances:
b. Materials mix and yield variances:
Computation of material yield variance:
Standard:
Total material yield variance = (Standard yield from actual input - Actual yield) x Standard cost per gallon = ( 12,120 - 11,600 ) x $ 14.8 = $ 7,696 U
Material price Variance Materials efficiency Variance Weed- X $ 1,690 F $ 8,448 U Pest -O $ 5,360 U $ 9,152 F Total $ 3,670 U $ 704 FRelated Questions
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