LCC Company produce cereal product. At the beginning of the year, LCC Company had the following standard cost shee per unit if almond chocolates (estimated to yield 4 kg per unit). SP Usage Standard Cost Direct Material: Dried Fruits $ 30.00 3 kg $ 90.00 Corn $ 20.00 2 kg $ 40.00 TOTAL 5 kg $ 130.00 Direct Labor: Assembly $ 25.00 0.80 hr $ 20.00 Packaging $ 20.00 0.20 hr $ 4.00 TOTAL 1 hr $ 24.00 Actual Results: Output 875 units Yield 3,500 kg Actual Mix Actual Price Direct Material: Dried Fruits 1,400 kg $ 28.00 Corn 2,600 kg $ 24.00 TOTAL 4,000 kg Direct Labor: Assembly 675 hours $ 24.50 Packaging 225 hours $ 21.00 TOTAL 900 hours If the variance is Unfavorable, the amount should be positive. Otherwise the Favorable variance should be negatove amount. Round the final answers to two decimal places. Compute for the following: 1. Material Price Variance? 2. Material Mix Variance? 3. Material Yield Variance?
LCC Company produce cereal product. At the beginning of the year, LCC Company had the following standard cost shee per unit if almond chocolates (estimated to yield 4 kg per unit). SP Usage Standard Cost Direct Material: Dried Fruits $ 30.00 3 kg $ 90.00 Corn $ 20.00 2 kg $ 40.00 TOTAL 5 kg $ 130.00 Direct Labor: Assembly $ 25.00 0.80 hr $ 20.00 Packaging $ 20.00 0.20 hr $ 4.00 TOTAL 1 hr $ 24.00 Actual Results: Output 875 units Yield 3,500 kg Actual Mix Actual Price Direct Material: Dried Fruits 1,400 kg $ 28.00 Corn 2,600 kg $ 24.00 TOTAL 4,000 kg Direct Labor: Assembly 675 hours $ 24.50 Packaging 225 hours $ 21.00 TOTAL 900 hours If the variance is Unfavorable, the amount should be positive. Otherwise the Favorable variance should be negatove amount. Round the final answers to two decimal places. Compute for the following: 1. Material Price Variance? 2. Material Mix Variance? 3. Material Yield Variance?
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
Chapter10: Standard Costing And Variance Analysis
Section: Chapter Questions
Problem 21BEA
Related questions
Question
LCC Company produce cereal product. At the beginning of the year, LCC Company had the following
SP | Usage | Standard Cost | |
Direct Material: |
|||
Dried Fruits | $ 30.00 | 3 kg | $ 90.00 |
Corn | $ 20.00 | 2 kg | $ 40.00 |
TOTAL | 5 kg | $ 130.00 | |
Direct Labor: |
|||
Assembly | $ 25.00 | 0.80 hr | $ 20.00 |
Packaging | $ 20.00 | 0.20 hr | $ 4.00 |
TOTAL | 1 hr | $ 24.00 |
Actual Results: | ||
Output | 875 units | |
Yield | 3,500 kg | |
Actual Mix | Actual Price | |
Direct Material: | ||
Dried Fruits | 1,400 kg | $ 28.00 |
Corn | 2,600 kg | $ 24.00 |
TOTAL | 4,000 kg | |
Direct Labor: |
||
Assembly | 675 hours | $ 24.50 |
Packaging | 225 hours | $ 21.00 |
TOTAL | 900 hours |
If the variance is Unfavorable, the amount should be positive. Otherwise the Favorable variance should be negatove amount. Round the final answers to two decimal places. Compute for the following:
1. Material Price Variance?
2. Material Mix Variance?
3. Material Yield Variance?
4.Material Quantity Variance?
5. Labor Rate Variance?
6. Labor Mix Variance?
7.Labor Yield Variance?
8. Labor Efficiency Variance?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Financial & Managerial Accounting
Accounting
ISBN:
9781337119207
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning