CASE 11-55

# CASE 11-55 - CASE 11-55 (50 MINUTES) 1. The \$22,000...

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CASE 11-55 (50 MINUTES) 1. The \$22,000 unfavorable variance between the budgeted and actual contribution margin for the chocolate nut supreme cookie product line during February is explained by the following variances: a. Direct-material price variance: Type of Material PQ*(AP + - SP) Variance Cookie mix. .............. 2,325,000(\$.02 - \$.02) \$ 0 Milk chocolate. ........ 1,330,000(\$.20 - \$.15) 66,500 U Almonds. ................. 240,000(\$.50 - \$.50). .. 0 Total. ........................................................... \$66,500 U * PQ = AQ , because all materials were used during the month of purchase. + AP = actual total cost (given) ÷ actual quantity

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CASE 11-55 (CONTINUED) b. Direct-material quantity variance: Type of Material SP(AQ - SQ*) Variance Cookie mix. .............. \$.02(2,325,000 - 2,250,000). ............... \$ 1,500 U Milk chocolate. ........ \$.15(1,330,000 - 1,125,000). ............... 30,750 U Almonds. ................. \$.50(240,000 - 225,000). .................. 7,500
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## This note was uploaded on 04/21/2010 for the course ACCT 621 taught by Professor Crotter during the Spring '10 term at UPenn.

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CASE 11-55 - CASE 11-55 (50 MINUTES) 1. The \$22,000...

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