Popcorn Ltd uses a batch production method to produce its single product by combining two materials...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Popcorn Ltd uses a batch production method to produce its single product by combining two materials Corn and Salt. The company has budgeted for a material mix ratio of 90:10 for Corn and Salk respectively. The following information relates to each batch: Direct material input 200 kg Material Corn standard price £1.50 per kg Salt standard price £3.00 per kg Actual results for month 10 were as follows: Output 1,890 kg of popcorn Corn 1,140 kg at a total price of £1,610 Salt 860 kg at a total price of £2,780 (a) Calculate, for month 10, the following variances: (i) material price for each material (ii) material usage for each material (iii) total material variance (b) Provide plausible reasons for material usage and material price variance. (c) Explain the usefulness of flexible budgeting. (12 marks) (6 marks) Popcorn Ltd uses a batch production method to produce its single product by combining two materials Corn and Salt. The company has budgeted for a material mix ratio of 90:10 for Corn and Salk respectively. The following information relates to each batch: Direct material input 200 kg Material Corn standard price £1.50 per kg Salt standard price £3.00 per kg Actual results for month 10 were as follows: Output 1,890 kg of popcorn Corn 1,140 kg at a total price of £1,610 Salt 860 kg at a total price of £2,780 (a) Calculate, for month 10, the following variances: (i) material price for each material (ii) material usage for each material (iii) total material variance (b) Provide plausible reasons for material usage and material price variance. (c) Explain the usefulness of flexible budgeting. (12 marks) (6 marks)
Expert Answer:
Answer rating: 100% (QA)
Note Direct material input is taken 2000 kgs and not 200 kgs a i Materials price variance Corn Salt ... View the full answer
Related Book For
Accounting For Managers Interpreting Accounting Information for Decision Making
ISBN: 978-1119979678
4th edition
Authors: Paul M. Collier
Posted Date:
Students also viewed these accounting questions
-
A company uses batch production methods to produce a single product by combining two materials Tee and Pee. The company has budgeted for a material mix ratio of 60:40 for Tee and Pee respectively....
-
The Hampshire Company manufactures umbrellas that sell for $12.50 each. In 2014, the company made and sold 60,000 umbrellas. The company had fixed manufacturing costs of $216,000. It also had fixed...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
Necked Amber purchased a bond for $1,038.90 exactly two years ago. At that time, the bond had a maturity of five years and a coupon rate of 10% (paid semi-annually). Assuming the rates below are the...
-
Temco, Inc., conveyed to the Wynns certain property adjoining an apartment complex being developed by Sonnett Realty Company. Although nothing to this effect was contained in the deed, the sales...
-
AutoZone Auto Parts uses a periodic-review inventory-control system for one of its stock items. The review interval is set at four weeks, and the lead time for receiving the materials ordered from...
-
Has an Euler trail Use the graphs and multigraphs in Figure 12.354. Identify any graphs and/or multigraphs with the given characteristics. If there are none, state so.
-
What are the major implications for the business manager if an assessment of current practices indicates substantial inconsistency in the information vision and IT architecture for the company? What...
-
A bond has a par value of $1,000, a current yield of 7.125 percent, annual interest payments, and 5 years to maturity. The bond quote is 101.584. What is the amount of each coupon payment? A. $35.63...
-
The micrometer (1m) is often called the micron. (a) How many microns make up 1.0 km? (b) What fraction of a centimeter equals 1.0m? (c) How many microns are in 1.0 yd?
-
D E F G H The December 31, 2018, post-closing trial balance ($ in millions) for Watkins Company is presented below: Debits Credits Cash 25,500 Investments (long-term) 55,000 Accounts receivable...
-
Obtained Fourier Series for flxx) = -x0
-
Find the Fourier Series of f(x) = x in the interval (-, )
-
Find the Fourier series of floc) = ease in the interval (-,I).
-
find the fourier series for f(x)= JC (2-x) 1x2
-
Find the Fourier series of flxx) = x-x in -
-
The main purpose of the data table is to determine the profit for each demand ranging from 1000 to 6000 at increments of 200. See the table below. Each column is described as follows: Demand: Thes
-
A test car is driven a fixed distance of n miles along a straight highway. (Here n Z+.) The car travels at one mile per hour for the first mile, two miles per hour for the second mile, four miles...
-
Using the information provided above, calculate the cost of sales and inventory value using the FIFO method.
-
What would be the effect of these two alternatives on Quickers reported profits and what might be the likely motivational effects? What suggestions would you make?
-
A full-time student pays 10,000 for tuition, incurs 6,000 for accommodation and meals, 1,000 for text books and is forced to give up work which earned her 8,000. Calculate the cost of the students...
-
The statements of financial position of Jumbo pic and of Nipper pic, on the date that Jumbo pic bought the shares in Nipper pic, were as follows: Required: Assume that the statement of financial...
-
Can you think of any drawbacks in providing interim financial statements for users? R3
-
A year ago Pod Limited bought 225,000 1 fully paid ordinary shares of Pea Limited for a consideration of 500,000. Pea Limiteds share capital and share premium were each the same as at todays date....
Study smarter with the SolutionInn App