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Category > Accounting Posted 13 May 2018 My Price 7.00

Zorba Manufacturing Company

Price, Mix, and Yield Variances. The Zorba Manufacturing Company uses a standard cost system. The standard cost card for one of its products shows the following materials standards:

Standard Price

Material Pounds X Per Pound

A 20 .70

B 5 .40

C 25 .20

Amount

$ 14

2

5

Total materials cost per unit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 21

The standard 50 lb. mix cost per lb. is $ .42 ($21 -;- 501bs.). The standard mix should produce 40 lbs of finished product, and the standard cost of finished product per lb. is $.525 ($21 -;- 401bs.).

Actual results for the period were:

Raw materials of 500,000 Ibs. were used as follows:

Material A 230,000 Ibs. @ $.80 per lb. Material B 50,000 lbs. @ $.35 per lb. Material C 220,000 lbs. @ $.25 per lb.

The output of the finished product was 390,000 Ibs.

Required: Product analysis showing materials price, mix, and yield variances from standards.

 

 


Answers

Maurice Tutor
(5)
Status NEW Posted 13 May 2018 03:05 PM My Price 7.00

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