5. Additional information from given above, assume that Mooniyan Division was able to maximize its production of Sacred Hammer with the incurrence of following actual costs:Material X (61,500 lbs) P 1,168,500Iron Hook (38,500 pcs) ?How much is Mooniyan's material mix variance? (Put a negative sign if the variance is favorable and round off answer to the nearest peso Northern Vale is one of the divisions of Moonton Company. Northern Vale produces "Iron Hook" and can currentlysell 75% of its annual capacity to outside customers. Mooniyan Division, another division of Moonton Company,developed "sacred hammer" which uses the "Iron Hook" as one of its direct materials plus another materials to bepurchased from outside suppliers. Mooniyan Division is working at full capacity and will require Northern Vale tosupply all the Iron Hooks that they need. All the divisions of Moonton Company uses standard costing and properlycontrols the costs and computes for variances.The standard cost in producing 1 unit of Iron Hook is as follows:Direct material (2.2 lbs @ P10/lb.)Php 22Direct labor (4 dlh @ P6/dlh)24Factory overhead30**30% fixed.**Budgeted annual fixed cost is P900,000The standard cost in producing 1 unit of Sacred Hammer is as follows:Iron Hook (1pc @ P80)Php 80Material X (1.5 lbs @ P20/lb.)30Direct labor (0.5 dlh @ P36/dlh)18Variable Factory overhead14Fixed Factory overhead12**Based on annual capacity of 40,000 unitsNorthern Vale currently sells the Iron Hook to outside customers at a mark-up of 10% on full standard cost whileMooniyan was able to find a supplier of Iron Hook at P80.

The distinction in the kinds of materials used is a fundamental concept in both variance analysis…

Answered: How much is Mooniyan's material mix…

How much is Mooniyan's material mix variance? (Put a negative sign if the variance is favorable and round off answer to the nearest peso

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter10: Decentralization: Responsibility Accounting, Performance Evaluation, And Transfer Pricing

Section: Chapter Questions

Problem 4CE

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