Roasters Limited is a coffee-blending firm. It produces a special blend of coffee known as Utopia...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Roasters Limited is a coffee-blending firm. It produces a special blend of coffee known as "Utopia Blend" by mixing two grades of coffee "AB" and "QP" as follows: Material AB QP Standard mix ratio AB QP 40% 60% A standard loss of 15% is expected. During the month of March 2002, the company produced 2,500 kg of "Utopia Blend". The actual quantities blended were as follows: Standard price per Kg Sh 120 Sh 100 Quantity used 1,400kg 1,600kg Cost (Sh) 175,000 152,000 Required: Calculate the following variances i) ii) iii) iv) v) Material price variance Material usage variance Material min variance Material yield variance Material cost variance (2 marks) (2 marks) (4 marks) (4 marks) (3 marks) Roasters Limited is a coffee-blending firm. It produces a special blend of coffee known as "Utopia Blend" by mixing two grades of coffee "AB" and "QP" as follows: Material AB QP Standard mix ratio AB QP 40% 60% A standard loss of 15% is expected. During the month of March 2002, the company produced 2,500 kg of "Utopia Blend". The actual quantities blended were as follows: Standard price per Kg Sh 120 Sh 100 Quantity used 1,400kg 1,600kg Cost (Sh) 175,000 152,000 Required: Calculate the following variances i) ii) iii) iv) v) Material price variance Material usage variance Material min variance Material yield variance Material cost variance (2 marks) (2 marks) (4 marks) (4 marks) (3 marks)
Expert Answer:
Answer rating: 100% (QA)
The detailed answer for the above question is provided below i Material price variance The formula for material price variance is Actual Quantity Purc... View the full answer
Related Book For
Cost Management Measuring Monitoring And Motivating Performance
ISBN: 9781118168875
2nd Canadian Edition
Authors: Leslie G. Eldenburg, Susan Wolcott, Liang Hsuan Chen, Gail Cook
Posted Date:
Students also viewed these accounting questions
-
You will receive $6,800 three years from now. The discount rate is 10 percent. a. What is the value of your investment two years from now? Multiply $6,800 (1/1.10) or divide by 1.10 (one years...
-
Let L: R2 R2 be the linear operator defined by (a) is In Ker L? (b) is In Ker L? (c) Is In range L? (d) is In range L? (e) Find Ker L (f) Find a set of vectors spanning range L. 21u u1 42 4) L112 2 3...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
A companys retained earnings on December 31, 2018 was $2,190,000 and its shareholders equity was $8,760,000. During 2019 the company reported the following: Net income $225,000 A sale of treasury...
-
What is the major difference in the accounting for a portfolio of trading securities and a portfolio of available-for-sale securities?
-
Six Sigma project Team members should have complimentary not similar skills Review Later True False
-
The following e-mail with an authentic looking e-mail address and logo was received by the controller of a small business: Required a. What should Justin do about these e-mails? b. What should Big...
-
Stone Sour Corp. issued 20-year bonds two years ago at a coupon rate of 7.1 percent. The bonds make semiannual payments. If these bonds currently sell for 105 percent of par value, what is the YTM?
-
E13 X Jx 2 3 4 5 A B D E F G 2. Use the same facts as in Problem 1 (Tar Heel Corporation), as to the amount of accumulated E&P, the dates, the land's fair market value, adjusted tax basis, and...
-
1. Jim Adams posts the column totals and individual transactions in "Other" columns to the appropriate general ledger account and updates each general ledger account balance. He places a posting...
-
There were two reasons for this spectacular success. Firstly, Nescafe gained universal insight: with the growth of social networks, they all became virtually connected to a lot of people whom wonder...
-
Suppose you are working with a certain plant and you have crossed a strain with normal chromosomes to a strain that is homozygous for a reciprocal translocation between chromosomes II and III. The F1...
-
Show that the equal payment series compounding factor is i F = A[ (+)-1].
-
Read the article: https://www.umgc.edu/current-students/learning-resources/writing-center/writing-resources/getting-started-writing/writing-for-an-audience View yourself as a speech expert. You have...
-
Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Percent Per Unit of Sales $ 60 39 $ 21 100% 65 35% Fixed expenses are $72,000 per month and the...
-
A 5-cm-diameter cylinder that is 50 cm long is at 55 oC and is to be cooled by crossflow immersion in a 10 oC stream. From Fig. 1.8, if the desired initial cooling rate is 300 W, what should be the...
-
Following the 2024 Kenya Certificate of Primary Education results, Azizi, Mlio, Haki and Dalila received admission to Great Kenya Secondary School. The school is one of the best institutions for...
-
Chapter 9 Stock Valuation at Ragan Engines Input area: Shares owned by each sibling Ragan EPS Dividend to each sibling Ragan ROE Ragan required return Blue Ribband Motors Corp. Bon Voyage Marine,...
-
Agencies of the U.S. federal government sometimes create handbooks on various business topics. The U.S. Federal Aviation Administration created the following handbook: Business Process Improvement...
-
Cedar Hill Manufacturing produces wooden outdoor furniture. Cedar Hill uses the direct method to allocate service department costs to the production departments. There are two service departments:...
-
Refer to the information in Exercise 14.21. The kaizen costing team made the following cost reduction suggestions: Direct materials Suppliers agreed to cost reductions of $4.50 for direct materials....
-
What would be the characteristics of a cumulative redeemable participating convertible preference share?
-
Explain the concept of limited liability.
-
Describe the global growth of stock markets.
Study smarter with the SolutionInn App