Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required informationSouth Atlantic Chemical Company manufactures industrial chemicals in Rio de Janeiro, Brazil. The company plans to introduce a new chemical solution and needs to

Required informationSouth Atlantic Chemical Company manufactures industrial chemicals in Rio de Janeiro, Brazil. The company plans to introduce a new
chemical solution and needs to develop a standard product cost. The new chemical solution is made by combining a chemical
compound (nyclyn) and a solution (salex), heating the mixture, adding a second compound (protet), and bottling the resulting solution
in 10-liter containers. The initial mix, which is 11 liters in volume, consists of 12 kilograms of nyclyn and 9.6 liters of salex. A 1-liter
reduction in volume occurs during the boiling process. The solution is cooled slightly before 25 kilograms of protet are added. The
addition of protet does not affect the total liquid volume.
The purchase price of the direct materials used in the manufacture of this new chemical solution are given below. (The real,
abbreviated R$, is Brazil's national currency. On the day this problem was written, one real was equivalent to US $0.270)
Required:
Determine the standard material cost of a 10-liter container of the new product.
Note: Round your answer to 2 decimal places.
Answer is complete but not entirely correct.
During June, Danby Company's material purchases amounted to 6,800 pounds at a price of $8.10 per pound. Actual costs
incurred in the production of 2,400 units were as follows:
The standards for one unit of Danby Company's product are as follows:
Required:
Compute the direct-material price and quantity variances, the direct-material purchase price variance, and the direct-labor rate and
efficiency variances.
Note: Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e.,
zero variance).
Answer is not complete.
image text in transcribed

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

Financial Accounting And Reporting

Authors: Mr Barry Elliott, Jamie Elliott

16th Edition

027377817X, 978-0273778172

More Books

Students also viewed these Accounting questions

Question

What level of candor do decision makers require?

Answered: 1 week ago