The Becton Enterprises (BE) produces a gasoline additive, Charger Power. This product increases engine efficiency and improves gasoline mileage by creating a more complete burn in the combustion process. Careful controls are required during the production process toensure that the proper mix of input chemicals is achieved and that evaporation is controlled. Loss of output and efficiency may result if the controls are not effective.The standard cost of producing a 500-liter batch of Charger Power is $135. The standard materials mix and related standard cost of each chemical used in a 500-liter batch are:Std costperliter$0.2000.4250.1500.300Std inputChemical quantityEchol200ProtexBenzCT-4010025050600The quantities of chemicals purchased and used during the current production period are shown in the schedule below. A total of 149 batches of Charger Power were manufactured during the current production period. The controller of BE has determined its costs andchemical usage variations at the end of the production period.Quantity TotalCost25, 200 $5,5006,3755,975 39,2002,3558,54090,020Chemical PurchasedEcholProtexBenzCT-4013,20040,2007,70086,300What is the total material yield variance?Multiple Choice$429.50.$139.50.Totalcost$40.0042.5037.5015.00$135.00$568.50.$415.00.QuantityUsed28,00014,280

The material yield variance is defined as the difference between the standard cost of the actual…

The quantities of chemicals purchased and used during the current production period are shown in the schedule below. A total of 149 batches of Charger Power were manufactured during the current production period. The controller of BE has determined its costs and chemical usage variations at the end of the production period. Chemical Purchased Echol Protex Benz CT-40 What is the total material yield variance? Quantity Total Quantity Cost Used 25,200 $5,500 28,000 13,200 6,375 14,280 40,200 5,975 39,200 7,700 2,355 8,540 86,300 90,020 Multiple Choice OO O O $429.50. $139.50. $568.50. $415.00.

The quantities of chemicals purchased and used during the current production period are shown in the schedule below. A total of 149 batches of Charger Power were manufactured during the current production period. The controller of BE has determined its costs and chemical usage variations at the end of the production period. Chemical Purchased Echol Protex Benz CT-40 What is the total material yield variance? Quantity Total Quantity Cost Used 25,200 $5,500 28,000 13,200 6,375 14,280 40,200 5,975 39,200 7,700 2,355 8,540 86,300 90,020 Multiple Choice OO O O $429.50. $139.50. $568.50. $415.00.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter14: Quality And Environmental Cost Management

Section: Chapter Questions

Problem 23E: Coyle Pharmaceuticals produces two organic chemicals (Org AB and Org XY) used in the production of...

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The Becton Enterprises (BE) produces a gasoline additive, Charger Power. This product increases engine efficiency and improves gasoline mileage by creating a more complete burn in the combustion process. Careful controls are required during the production process to ensure that the proper mix of input chemicals is achieved and that evaporation is controlled. Loss of output and efficiency may result if the controls are not effective. The standard cost of producing a 500-liter batch of Charger Power is $135. The standard materials mix and related standard cost of each chemical used in a 500-liter batch are: Chemical Std input quantity Std cost per liter Total cost Echol 200 $ 0.200 $ 40.00 Protex 100 0.425 42.50 Benz 250 0.150 37.50 CT-40 50 0.300 15.00 600 $ 135.00 The quantities of chemicals purchased and used during the current production period are…
The Becton Enterprises (BE) produces a gasoline additive, Charger Power. This product increases engine efficiency and improves gasoline mileage by creating a more complete burn in the combustion process. Careful controls are required during the production process to insure that the proper mix of input chemicals is achieved and that evaporation is controlled. Loss of output and efficiency may result if the controls are not effective. The standard cost of producing a 500-liter batch of Charger Power is $135. The standard materials mix and related standard cost of each chemical used in a 500-liter batch are: Chemical Std input quantity Std cost per liter Total cost Echol 200 $ 0.200 $ 40.00 Protex 100 0.425 42.50 Benz 250 0.150 37.50 CT-40 50 0.300 15.00 600 $ 135.00 The quantities of chemicals purchased and used during the current production period are…
Energy Products Company produces a gasoline additive, Gas Gain. This product increases engine efficiency and improves gasoline mileage by creating a more complete burn in the combustion process. Careful controls are required during the production process to ensure that the proper mix of input chemicals is achieved and that evaporation is controlled. If the controls are not effective, there can be a loss of output and efficiency. The standard cost of producing a 500-liter batch of Gas Gain is $135.00. The standard direct materials mix and related standard cost of each chemical used in a 500-liter batch are as follows: Chemical Mix SP Standard Cost Echol 200 liters $0.200 $40.00 Protex 100 0.425 42.50 Benz 250 0.150 37.50 CT-40 50 0.300 15.00 Total 600 liters $135.00 The quantities of chemicals purchased and used during the current production period are shown in the following schedule. A total of 230…
energy Products Company produces a gsoline additive, Gas Gain.This product increases engine efficiency and improves gasoline mileage by creating a more complete burn in the combustion process. Careful controls are required during the production process to ensure that the proper mix of input chemicals is achieved and that evaporation is controlled. If the controls are not effective , there can be a loss of output and efficiency. The standard cost of producing a 500- liter batch of Gas Gain is $135. The standard direct materials mix and related standard cost of each chemical used in a 500-liter batch are as follows: The quantities of chemicals purchased and used during the current production period are shown in the following schedule. A total of 140 batches of Gas Gain were manufactured during the current production period.Energy Products determines its cost and chemical usage variations at the end of each production period. Required: Compute the total direct materials usage variance,…
Energy Products Company produces a gasoline additive, Gas Gain. This product increases engine efficiency and improves gasoline mileage by creating a more complete burn in the combustion process.Careful controls are required during the production process to ensure that the proper mix of input chemicals is achieved and that evaporation is controlled. If the controls are not effective, there can be a loss of output and efficiency.The standard cost of producing a 500-liter batch of Gas Gain is $135. The standard direct materials mix and related standard cost of each chemical used in a 500-liter batch are as follows: The quantities of chemicals purchased and used during the current production period are shown in the following schedule. A total of 140 batches of Gas Gain were manufactured during the current production period. Energy Products determines its cost and chemical usage variations at the end of each production period. Required:Compute the total direct materials usage variance, and…
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McDermott Company has developed a new industrial component called IC-75. The company is excited about IC-75 because it offers superior performance relative to the comparable component soid by McDermott's primary competitor. The competing part sells for $1,200 and needs to be replaced after 2,000 hours of use. It also requires $200 of preventive maintenance during its useful life. The IC-75's performance capabilities are similar to its competing product with two important exceptions-it needs to be replaced after 4,000 hours of use and it requires $300 of preventive maintenance during its useful ife. Required: From a value-based pricing standpoint: 1. What is the reference value that McDermott should consider when pricing IC-75? 2. What is the differentiation value offered by IC-75 relative the competitor's offering for each 4,000 hours of usage? 3. What is IC-75's economic value to the customer over its 4,000-hour life? 4. What range of possible prices should McDermott consider when…