Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The cost accountant for Blue Pharmaceuticals has informed you that the company's materials quantity variance for the drug Allegro was exactly equal to its materials
The cost accountant for Blue Pharmaceuticals has informed you that the company's materials quantity variance for the drug Allegro was exactly equal to its materials price variance for the year. The company's normal level of production is 80 batches of Allegro per year. However, due to uncertainties regarding foundation funding, it produced only 60 batches during the current year. Other cost information regarding Allegro's direct materials is as follows: |
Standard price per gram of material | $ | 18 | |
Actual kilograms purchased and used during the year | 150 | kg | |
Actual cost of materials purchased during the period | $ | 2,700,000 | |
Number of grams per kilogram | 1,000 | grams | |
Compute the standard quantity of materials allowed per batch of Allegro produced.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started