. Sandy's Snacks produces snack mixes for the gourmet and natural foods market. Its most popular product is Tempting Trail Mix, a mixture of peanuts, dried cranberries, and chocolate pieces. For each batch, the budgeted quantities and budgeted prices are as follows: Quantity per Batch 60 cups 30 cups Price per Cup $1 Peanuts Dried cranberries $2 Chocolate pieces 10 cups Small changes to the standard mix of direct materials reflected in the above quantities do not significantly affect the overall end product. In addition, not all ingredients added to production end up in the finished product, as some are rejected during inspection. In the current period, Sandy's Snacks made 100 batches of Tempting Trail Mix with the following actual quantity, cost, and mix of inputs: Actual Quantity 6,720 cups 2,625 cups 1,155 cups 10,500 cups Actual Cost Actual Mix Peanuts $ 5,712 64% Dried cranberries 5,775 25% Chocolate pieces 3,350 11% $14,837 Total actual 100%

. Sandy's Snacks produces snack mixes for the gourmet and natural foods market. Its most popular product is Tempting Trail Mix, a mixture of peanuts, dried cranberries, and chocolate pieces. For each batch, the budgeted quantities and budgeted prices are as follows: Quantity per Batch 60 cups 30 cups Price per Cup $1 Peanuts Dried cranberries $2 Chocolate pieces 10 cups Small changes to the standard mix of direct materials reflected in the above quantities do not significantly affect the overall end product. In addition, not all ingredients added to production end up in the finished product, as some are rejected during inspection. In the current period, Sandy's Snacks made 100 batches of Tempting Trail Mix with the following actual quantity, cost, and mix of inputs: Actual Quantity 6,720 cups 2,625 cups 1,155 cups 10,500 cups Actual Cost Actual Mix Peanuts $ 5,712 64% Dried cranberries 5,775 25% Chocolate pieces 3,350 11% $14,837 Total actual 100%

Name: Q.Calculate the total direct materials efficiency variance. . Sandy's
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Q.Calculate the total direct materials efficiency variance. . Sandy's Snacks produces snack mixes forthe gourmet and natural foods market. Its most popular product is Tempting Trail Mix, a mixture of peanuts,dried cranberries, and chocolate pieces. F

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter9: Profit Planning And Flexible Budgets

Section: Chapter Questions

Problem 68P: Use the following information for Problems 9-67 through 9-69: Ladan Suriman, controller for Healthy...

See similar textbooks

Similar questions

Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (2,300 pounds) has the following standards: Standard Quantity Standard Price Whole tomatoes 3,800 lbs. $0.48 per lb. Vinegar 210 gal. 2.90 per gal. Corn syrup 18 gal. 10.70 per gal. Salt 84 lbs. 2.70 per lb. The actual materials in a batch may vary from the standard due to tomato characteristics. Assume that the actual quantities of materials for batch 08-99 were as follows: 4,000 lbs. of tomatoes 202 gal. of vinegar 19 gal. of corn syrup 83 lbs. of salt a. Determine the standard unit materials cost per pound for a standard batch. If required, round amounts to the nearest cent. Ingredient Standard Costper Batch Whole tomatoes $ Vinegar Corn syrup Salt Total $ Standard unit materials cost per pound $ b. Determine the direct materials quantity variance for batch 08-99. If required, round amounts to the nearest cent. Enter a favorable…
H.J. Heinz Company uses standards to control its materials costs. Assume that a batch of ketchup (2,700 pounds) has the following standards: Ingredient Standard Quantity Standard Price Whole tomatoes 4,500 lbs. $0.37 per lb. Vinegar 250 gal. 2.30 per gal. Corn syrup 22 gal. 8.20 per gal. Salt 100 lbs. 2.10 per lb. The actual materials in a batch may vary from the standard due to tomato characteristics. Assume that the actual quantities of materials for batch 08-99 were as follows: 4,700 lbs. of tomatoes240 gal. of vinegar23 gal. of corn syrup99 lbs. of salt a. Determine the standard unit materials cost per pound for a standard batch. If required, round amounts to the nearest cent. Ingredient Standard Costper Batch Whole tomatoes $fill in the blank 1 Vinegar fill in the blank 2 Corn syrup fill in the blank 3 Salt fill in the blank 4 Total $fill in the blank 5 Standard unit materials cost per pound $fill in the blank 6 b. Determine the direct materials…
Use the following information for Problems 9-67 through 9-69: Ladan Suriman, controller for Healthy Pet Company, has been instructed to develop a flexible budget for overhead costs. The company produces two types of dog food. BasicDiet is a standard mixture for healthy dogs. SpecialDiet is a reduced protein formulation for older dogs with health problems. The two dog foods use common raw materials in different proportions. The company expects to produce 80,000 bags of each product during the coming year. BasicDiet requires 0.20 direct labor hour per bag, and SpecialDiet requires 0.30 direct labor hour per bag. Ladan has developed the following fixed and variable costs for each of the four overhead items: Problem 9-67 Overhead Budget for a Particular Level of Activity Refer to the information for Healthy Pet Company above. Required: 1. Calculate the total direct labor hours required for the production of 80,000 bags of BasicDiet and 80,000 bags of SpecialDiet. 2. Prepare an overhead budget for the expected activity level (calculated in Requirement 1) for the coming year.
Use the following information for Problems 9-67 through 9-69: Ladan Suriman, controller for Healthy Pet Company, has been instructed to develop a flexible budget for overhead costs. The company produces two types of dog food. BasicDiet is a standard mixture for healthy dogs. SpecialDiet is a reduced protein formulation for older dogs with health problems. The two dog foods use common raw materials in different proportions. The company expects to produce 80,000 bags of each product during the coming year. BasicDiet requires 0.20 direct labor hour per bag, and SpecialDiet requires 0.30 direct labor hour per bag. Ladan has developed the following fixed and variable costs for each of the four overhead items: Problem 9-68 Flexible Budget for Various Production Levels Refer to the information for Healthy Pet Company on the previous page. Required: 1. Calculate the direct labor hours required for production that is 10% higher than expected. Calculate the direct labor hours required for production that is 20% lower than expected. 2. Prepare an overhead budget that reflects production that is 10% higher than expected and for production that is 20% lower than expected. (Hint: Use total direct labor hours calculated in Requirement 1.)
Use the following information for Problems 9-67 through 9-69: Ladan Suriman, controller for Healthy Pet Company, has been instructed to develop a flexible budget for overhead costs. The company produces two types of dog food. BasicDiet is a standard mixture for healthy dogs. SpecialDiet is a reduced protein formulation for older dogs with health problems. The two dog foods use common raw materials in different proportions. The company expects to produce 80,000 bags of each product during the coming year. BasicDiet requires 0.20 direct labor hour per bag, and SpecialDiet requires 0.30 direct labor hour per bag. Ladan has developed the following fixed and variable costs for each of the four overhead items: Problem 9-69 Performance Report Based on Actual Production Refer to the information for Healthy Pet Company on the previous page. Assume that Healthy Pet actually produced 100,000 bags of BasicDiet and 90,000 bags of SpecialDiet. The actual overhead costs incurred were as follows: Required: 1. Calculate the number of direct labor hours budgeted for actual production of the two products. 2. Prepare a performance report for the period based on actual production. 3. CONCEPTUAL CONNECTION Based on the report, would you judge any of the variances to be significant? Can you think of some possible reasons for the variances?
Snapware Systems produces commercial strength cleansing supplies. Two of its main products are window cleaner that uses ammonia, and floor cleaner that uses bleach. Information for the most recent period follows: Product Names Window Cleaner (ammonia) Floor Cleaner (bleach) Direct materials information: Standard ounces per unit 16 oz. 24 oz. Standard price per ounce $0.75 ? Actual quantity used per unit 20 oz. 22 oz. Actual price paid for material $1.00 $0.90 Actual quantity purchased and used 1,500 oz. 2,800 oz.. Price variance ? $300 U Quantity variance $1,500 U ? Total direct materials variance ? $678 F Number of units produced 500 600 What is the standard price for bleach? Select one: a. $0.88/oz. b. $1.09/oz. c. $1.14/oz. d. $0.79/oz. e. $0.92/oz.
Required information [The following information applies to the questions displayed below.] FreshPak Corporation manufactures two types of cardboard boxes used in shipping canned food, fruit, and vegetables. The canned food box (type C) and the perishable food box (type P) have the following material and labor requirements. Direct material required per 100 boxes: Paperboard ($0.32 per pound) Corrugating medium ($0.16 per pound) Direct labor required per 100 boxes ($16.00 per hour) Type of Box 50 pounds 90 pounds 40 0.35 pounds hour 50 pounds 0.70 hour The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 440,000 units for each type of box. Production overhead is applied on the basis of direct-labor hours. Indirect material Indirect labor Utilities Property taxes Insurance Depreciation Total $ 13,350 91,650 37,500 25,000 18,000 45,500 $ 231,000 The following selling and administrative expenses are…
Maloney Pharmaceuticals manufacturers an over-the-counter allergy medication. The company sells both large commercial containers of 1,000 capsules to health care facilities and travel packs of 20 capsules to shops in airports, train stations, and hotels. The following information has been developed to determine if an activity-based costing system would be beneficial: LOADING... (Click the icon to view the information.) Read the requirements LOADING... . Requirement 1. Maloney's original single plantwide overhead allocation rate costing system allocated indirect costs to products at $154.88 per machine hour. Compute the total indirect costs allocated to the commercial containers and to the travel packs under the original system. Then compute the indirect cost per unit for each product. Round to two decimal places. Select the formula, and then enter the amounts to compute the indirect cost per unit for each product.…
Activity Cost Drivers and Cost Estimation Market Street Soup Company produces ten varieties of soup in large vats, several thousand gallons at a time. The soup is distributed to several categories of customers. Some soup is packaged in large containers and sold to college and university food services. Some is packaged in half-gallon or small containers and sold through wholesale distributors to grocery stores. Finally, some is packaged in a variety of individual servings and sold directly to the public from trucks owned and operated by Market Street Soup Company. Management has always assumed that cost fluctuated with the volume of soup, and cost-estimating equations have been based on the following cost function: Estimated costs = Fixed costs + Variable costs per gallon x Production in gallons Lately, however, this equation has not been a very accurate predictor of total costs. At the same time, management has noticed that the volumes and varieties of soup sold through the three…
Sharon's Delights Chocolate Company makes dark chocolate and light chocolate. Both products require cocoa and sugar. The following planning information has been made available: Cocoa Sugar Standard labor time Planned production Standard labor rate Actual production (cases) Cocoa Sugar Dark chocolate Light chocolate Actual Price per Pound $4.90 1.24 Required: a. Dark Chocolate 4,000 cases $15.50 per hr. Standard Amount Standard Amount per Case per Case Dark Chocolate Light Chocolate Sharon's Delights Chocolate Company does not expect there to be any beginning or ending inventories of cocoa or sugar. At the end of the budget year, Sharon's Delights Chocolate Company had the following actual results: Dark Chocolate Light Chocolate 4,500 Actual Labor Rate $15.25 per hr. 15.80 per hr. 8 lbs. 5 lbs. 0.50 hr. Direct materials price variance Direct materials quantity variance Total direct materials cost variance b. Direct labor rate variance Direct labor time variance Total direct labor cost…
I Love My Chocolate Company makes dark chocolate and light chocolate. Both products require cocoa and sugar. The following planning information has been made available: Standard Amount per Case Cocoa Dark Chocolate Light Chocolate Standard Price per Pound 9 lb. 6 lb. 7 lb. 11 lb. $5.2 0.6 Sugar Standard labor 0.4 hr. 0.5 hr. time Planned production Standard labor rate Dark Chocolate Light Chocolate 4,200 cases $16.5 per hr. 10,000 cases $16.5 per hr. I Love My Chocolate does not expect there to be any beginning or ending inventories of cocoa or sugar. At the end of the budget year, I Love My Chocolate Company had the following actual results: Dark Chocolate Actual production (cases) Light Chocolate 10,400 Actual Pounds Purchased and Used 4,000 Actual Price per Pound Cocoa Sugar $5.3 0.55 98,900 138,800 Actual Labor Rate Actual Labor Hours Used Dark chocolate $16.2 per hr. 16.8 per hr. 1,460 5,330 Light chocolate Required: Prepare the following variance analyses for both chocolates and…
FreshPak Corporation manufactures two types of cardboard boxes used in shipping canned food, fruit, and vegetables. The canned food box (Type C) and the perishable food box (Type P) have the following material and labor requirements. Direct material required per 100 boxes: Type C Type P Paperboard ( $0.20 per pound) 30 pounds 70 pounds Corrugating medium ( $0.10 per pound) 20 pounds 30 pounds Direct labor required per 100 boxes ($12.00 per hour) 0.25 hour 0.50 hour The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 495,000 units for each type of box. Production overhead is applied on the basis of direct labor hours. Indirect material $10,500 Indirect labor $50,000 Utilities $25,000 Property taxes $18,000 Insurance $16,000 Depreciation $29,000 Total $148,500 The following selling and administrative expenses are anticipated for the next year. Salaries and…