Determine the price variances and quantity variances for direct materials, direct labor, and overhead. That is,...

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Determine the price variances and quantity variances for direct materials, direct labor, and overhead. That is, do e11-2 (part 2), e11-3 (part 2), and e11-4 (part 2). 0 - ZOOM + EXERCISE 11-1 Setting Standards; Preparing a Standard Cost Card [L01] Martin Company manufactures a powerful cleaning solvent. The main ingredient in the solvent is a raw material called Echol. Information concerning the purchase and use of Echol follows: Purchase of Echol Echol is purchased in 15-gallon containers at a cost of $115 per container. A discount of 2% is offered by the supplier for payment within 10 days, and Martin Company takes all discounts. Shipping costs, which Martin Company must pay, amount to $130 for an average shipment of 100 15-gallon containers of Echol. Use of Echol The bill of materials calls for 7.6 quarts of Echol per bottle of cleaning solvent. (Each gallon contains four quarts.) About 5% of all Echol used is lost through spillage or evapora tion (the 7.6 quarts above is the actual content per bottle). In addition, statistical analysis has shown that every 41st bottle is rejected at final inspection because of contamination. Required: 1. Compute the standard purchase price for one quart of Echol. 2. Compute the standard quantity of Echol (in quarts) per salable bottle of cleaning solvent. 3. Using the data from (1) and (2) above, prepare a standard cost card showing the standard cost of Echol per bottle of cleaning solvent. EXERCISE 11-2 Direct Materials Variances [LO2] Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the company's products, a football helmet for the North American market, requires a special plastic. During the quarter ending June 30, the company manufactured 35,000 helmets, using 22,500 kilograms of plastic. The plastic cost the company RM171.000. (The currency in Malaysia is the ringgit, which is denoted here by RM.) CO 8 Determine the price variances and quantity variances for direct materials, direct labor, and overhead. That is, do e11-2 (part 2), e11-3 (part 2), and e11-4 (part 2). 0 - ZOOM + EXERCISE 11-1 Setting Standards; Preparing a Standard Cost Card [L01] Martin Company manufactures a powerful cleaning solvent. The main ingredient in the solvent is a raw material called Echol. Information concerning the purchase and use of Echol follows: Purchase of Echol Echol is purchased in 15-gallon containers at a cost of $115 per container. A discount of 2% is offered by the supplier for payment within 10 days, and Martin Company takes all discounts. Shipping costs, which Martin Company must pay, amount to $130 for an average shipment of 100 15-gallon containers of Echol. Use of Echol The bill of materials calls for 7.6 quarts of Echol per bottle of cleaning solvent. (Each gallon contains four quarts.) About 5% of all Echol used is lost through spillage or evapora tion (the 7.6 quarts above is the actual content per bottle). In addition, statistical analysis has shown that every 41st bottle is rejected at final inspection because of contamination. Required: 1. Compute the standard purchase price for one quart of Echol. 2. Compute the standard quantity of Echol (in quarts) per salable bottle of cleaning solvent. 3. Using the data from (1) and (2) above, prepare a standard cost card showing the standard cost of Echol per bottle of cleaning solvent. EXERCISE 11-2 Direct Materials Variances [LO2] Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the company's products, a football helmet for the North American market, requires a special plastic. During the quarter ending June 30, the company manufactured 35,000 helmets, using 22,500 kilograms of plastic. The plastic cost the company RM171.000. (The currency in Malaysia is the ringgit, which is denoted here by RM.) CO 8