) Self-Service-Student Sc ×C Mail. brdstead 120@amx/MChapter 8 Homework 8 Co nec
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) Self-Service-Student Sc ×C Mail. brdstead 120@amx/MChapter 8 Homework 8 Co nect Hor -) C | ezto.mheducation.com/hm.tpx Logan Fruit Drink Company planned to make 200,000 containers of apple juice. It expected to use two cups of frozen apple concentrate to make each container of juice, thus using 400,000 cups of frozen concentrate The standard price of one cup of apple concentrate is $0.60. Logan actually paid $249,550 to purchase 402,500 cups of concentrate, which was used to make 201,000 containers of apple juice. Required: b. Compute the actual price per cup of concentrate. (Round your answer to 2 decimal places.) per cup c. Compute the standard quantity (number of cups of concentrate) required to produce the containers. andardqantty cups d. Compute the materials price variance and indicate whether it is favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).) Total price variance e. Compute the materials usage variance and indicate whether it is favorable (F) or unfavorable (U) (Select "None" if there is no effect (i.e. zero variance).) Total usage variance Type here to search HIBA
Explanation / Answer
b.
Actual price per cup = Total price paid/total cup purchased = $ 249,550/402,500 = $ 0.62 per cup
c.
Standard quantity = Actual quantity prepared x standard quantity of cups required
= 201,000 x 2 = 402,000 cups
d.
Material price variance = (Standard price – Actual price) x Actual quantity
= ($ 0.60 - $ 0.62) x 402,500
= - $ 0.02 x 402,500 = - $ 8,050 U
e.
Material usages variance = (Standard quantity – Actual quantity) x Standard price
= (402,000 – 402,500) x $ 0.60
= - 500 x $ 0.60 = - $ 300 U
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