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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