Question
Gorgorita Merger produces the popular 3n1 face powder. Gorgorita has in its budget the following standards for one kilo of the 3n1 face powder: Ingredients
Gorgorita Merger produces the popular "3n1" face powder. Gorgorita has in its budget the following standards for one kilo of the "3n1" face powder: Ingredients (Input) Standard Quantity (Grams) Standard Unit Cost Standard Cost Paminta 200 grams (20%) P3 P600 Gawgaw 700 grams (70%) P4 P2,800 Atsuete 100 grams (10%) P5 P500 TOTAL 1,000 grams (100%) P3,900 The company reported the following production and cost data for the 2020 operations: Ingredients (Input) Standard Quantity (Grams) Standard Unit Cost Standard Cost Paminta 45,000 P4 P180,000 Gawgaw 125,000 P3 P375,000 Atsuete 30,000 P6 P180,000 TOTAL 200,000 P735,000 The company produced 190 kilos of "3n1" face powder in 2020. REQUIRED: 1. Total materials cost variance 2. Materials price variance 3. Materials mix variance 4. Materials yield variance
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