Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

10-21 What is the ullelenico bo EXERCISES EXERCISE 10-1 Setting Standards; Preparing a Standard Cost Card [L01] Swedish pharmaceutical company Davos Pharmacia makes an anticoagulant

image text in transcribed
10-21 What is the ullelenico bo EXERCISES EXERCISE 10-1 Setting Standards; Preparing a Standard Cost Card [L01] Swedish pharmaceutical company Davos Pharmacia makes an anticoagulant drug. The main ingredient in the drug is a raw material called Alpha SR40. Information concerning the purchase and use of Alpha SR40 follows: Purchase of Alpha SR40: The raw material Alpha SR40 is purchased in 2-kilogram containers at a e 439 cost of 3,000 Kr per kilogram. (The Swedish currency is the krona, which is abbreviated as Kr.) A discount of 2% is offered by the supplier for payment within 10 days, and Davos Pharmacia takes all discounts. Shipping costs, which Davos Pharmacia must pay, amount to 1,000 Kr for an average shipment of ten 2-kilogram containers. Use of Alpha SR40: The bill of materials calls for 6 grams of Alpha SR40 per capsule of the anticoagulant drug. (A kilogram equals 1,000 grams.) About 4% of all Alpha SR40 purchased is rejected as unsuitable and is not used to make the anticoagulant drug. Thus, on average the 6 grams of suitable Alpha SR40 required for each capsule represents 96% of the amount that initially goes into production. 9 Required: 1. Compute the standard purchase price for one gram of Alpha SR40. 2. Compute the standard quantity of Alpha SR40 (in grams) per capsule that passes final inspection. (Carry computations to two decimal places.) Using the data from (1) and (2) above, prepare a standard cost card showing the standard cost of Alpha SR40 per capsule of the anticoagulant drug. 3. EXERCISE 10-2 Material Variances [LO2] Fantastic Feeder Products Inc. manufactures high-quality wooden cutting boards sold to restaurants nt home caoks. One of these boards, the CertiPro lI, requires an expensive hardwood. Co lU cutting boards using 540 metres

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Analysing The Value Proposition Of The Audit Process In Africa The Case Of Malawi

Authors: Daniel Dunga

1st Edition

3659166286, 978-3659166280

More Books

Students also viewed these Accounting questions

Question

c. What were you expected to do when you grew up?

Answered: 1 week ago

Question

d. How were you expected to contribute to family life?

Answered: 1 week ago

Question

e. What do you know about your ethnic background?

Answered: 1 week ago