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Required Information

Case $10-50$ Missing Data; Varlances, Ledger Accounts $($Appendix$)($LO $10-1,10-3,10-9)$

$[$The following informotion opplies to the questions clisployed below.$]$

MacGyver Corporation manufoctures a product called Miracle Goo, which comes in handy for just about anything. The

thick terry substance is sold in six$-$gallon drums. Two row materials are used; these are referred to by people in the

business as A and B$.$ Two types of labor are required also. These are mixers $($labor class I$)$ and pockers $($labor class II$).$ You

were recently hired by the company president, Pete Thorn, to be the controller. You soon learned that MocGyver uses a

standard$-$costing system. Variances are computed and closed into Cost of Goods Sold monthly. After your first month on

the job, you gathered the necessary doto to compute the month's variances for direct material and direct labor. You

finished everything up by $5$:$00$ p$.$m$.$ On the $31$st$,$ including the credit to Cost of Goods Sold for the sum of the variances.

You decided to take all your notes home to review them prior to your formal presentotion to Thorn first thing in the

morning. As on afterthought, you grabbed a drum of Miracle Goo as well, thinking it could prove useful in some

unanticipated way.

You spent the evening boning up on the dato for your report and were rescly to call it a night. As luck would have it

though, you knocked over the Mirscle Goo as you rose from the kitchen toble. The stuff splattered everywhere, and, most

unfortunately, obliterated most of your notes. All that remained legible is the following information.

Other assorted data gleaned from your notes:

The standards for each drum of Miracle Goo include $12$ pounds of material $A$ at a standard price of $$4$ per pound.

The standard cost of material B is $$18$ for each drum of Mirscle Goo.

Purchases of material A were $12,000$ pounds at $$3\mathrm{.}50$ per pound.

Given the actual output for the month, the standard allowed quantity of material A was $13,200$ pounds. The standard

allowed quantity of material $B$ was $6,600$ gallons.

Although $7,500$ gallons of B were purchased, only $6,400$ gollons were used.

The standard wage rate for mixers is $$18$ per hour. The standard labor cost per drum of product for mixers is $$36$ per

drum.

The standards allow $3$ hours of direct labor II $($packers$)$ per drum of Miracle Goo. The standard labor cost per drum of

product for pockers is $$36$ per drum.

Pockers were paid $$11\mathrm{.}80$ per hour during the month.

You happened to remember two additional facts. There were no beginning or ending inventories of either work in process

or finished goods for the month. The incresse in accounts poyoble relates to direct$-$material purchases only.

Now you've got a major problem. Somehow you've got to reconstruct all the missing data in order to be ready for your

meeting with the president. You start by making the following list of the facts you want to use in your presentation. Before

getting down to business, you need o brief walk to clear your head. Out to the trosh you go$,$ and toss the remaining

Mirocle Goo$\mathrm{.}1$

Actual output

$2$

Compute the following amounts related to direct material at MacGyver for the month. $($Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter $"0"$ for no effect $($i$.$e$.,$ zero variance$).$ Round "Standard price" "Standard cost per drum" and "Actual price" to $2$ decimal places.$)$

a$.$ Standard quantity per drum

b$.$ Standard price

c$.$ Standard cost per drum

d$.$ Standard quantity allowed, given actual output

e$.$ Actual quantity purchased

f$.$ Actual price

g$.$ Actual quantity used

h$.$ Purchase price variance

i$.$ Quantity variance

$3$

Compute the following amounts related to direct labor at MacGyver for the month. $($Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter $"0"$ for no effect $($i$.$e$.,$ zero variance$).$ Round "Standard rate per hour" "Standard cost per drum" and "Actual rate per hour" to $2$ decimal places.$)$

a$.$ Standard hours per drum

b$.$ Standard rate per hour

c$.$ Standard cost per drum

d$.$ Standard quantity allowed, given actual output

e$.$ Actual rate per hour

f$.$ Actual hours

g$.$ Rate variance

h$.$ Efficiency variance

$4$

Determine the total of all variances for the month. $($Indicate the effect of the variance total by selecting "Favorable" or "Unfavorable". Select "None" and enter $"0"$ for no effect $($i$.$e$.,$ zero variance$).)$

Total of all variances for month $\_\_\_\_\_\_\_\_\_\_$

$($favorable$,$ unfavorable, or none$)$