Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help with the two problems. Thank you! Use the folowing standard cost card for 1 galion of ice cream to answer the questions

I need help with the two problems. Thank you! image text in transcribed
Use the folowing standard cost card for 1 galion of ice cream to answer the questions Cost Summary STANDARD COST CARD Product: Gallon of Ice Cream Manufacturing Standard Standard Cost Cost Information Quantity per Unit Direct Materials Cream 5 quarts $1.15 per quart Sugar $0.08 per ounce Direct Labor 3 minutes $36.00 per hour Total Direct Costs 16 ounces $5.75 $1.28 $1.80 $8.83 Actual direct costs incurred to make 50 gallons of ice cream: 275 quarts of cream at $1.05 per quart 832 ounces of sugar at $0.075 per ounce 165 minutes of labor at $37 per hour Al material used was bought during the current penod. A. Compute the material and labor variances B. Comment on the results and possible causes of the variances Woodpecker manufactures sawmill equipment. They use a standard costing syster and recognize material price varance at the time of material purchases. They use carbide to make the teeth on their band-saw blades. They receveda order for 250 band-saw blades, but they did not have any carbide in stock. They purchased 3.500 pounds of carb de for $14,875 but should have spent $16275. Each saw blade has a standard carbide drect materials quantty of 78 pounds. A If they used 8 pounds per blace, what would be the direct materials quantity varande? B. If they used 7.5 pounds per blade, what would be the direct material quantity varende? C. Compute the direct materials price vanarce based on 7.5 pounds of carbide per blade actually used

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_2

Step: 3

blur-text-image_3

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

Biometric And Auditing Issues Addressed In A Throughput Model

Authors: Waymond Rodgers

1st Edition

1617356530, 978-1617356537

More Books

Students also viewed these Accounting questions