The sum of the material mix and material yield variances equals a the material

The sum of the material mix and material yield

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30. The sum of the material mix and material yield variances equals:a.the material quantity variance.b.the material purchase price variance.c.the total material variance.d.none of the above.4
Part II – Problems1.Holiday Chemical Company uses a standard cost system to collect costs related to the production of its “bowling ball” fruitcakes. Seven (7) ounces of pecans are included in each bowling ball fruitcake.Because Holiday wants only the best pecans in its fruitcakes, the pecans they buy are inspected and some are discarded as unacceptable for fruitcake production. The loss rate is expected to be 1 ounce of pecans for every 5 ounces inspected. Under traditional standard costing, how many ounces of pecans should Holiday use as a standard quantity per fruitcake?2.Agas Company is a chemical manufacturer that supplies industrial users. The company plans to introduce a new chemical solution and needs to develop a standard product cost for this new solution. The new chemical solution is made by combining a chemical compound (Nyclyn) and a solution (Salex), boiling the mixture, adding a second compound (Protet), and bottling the resulting solution in 20-liter containers. The initial mix, which is 20 liters in volume, consists of 24 kilograms of Nyclyn and 19.2 liters of Salex. A 20% reduction in volume occurs during the boiling process. The solution is then cooled slightly before 10 kilograms of Protet are added; the addition of Protet does not affect the total liquid volume. The purchase prices of the raw materials used in the manufacture of this new chemical solution are as follows:NyclynP45.00 per kilogramSalexP63.00 per literProtetP84.00 per kilogramThe total standard materials cost of 20 liters of the product is:3.Stench Foods Company uses a standard cost system to collect costs related to the production of its garlic flavored yogurt. It takes 15 minutes of labor time to crush enough garlic to fill one container of yogurt. Because the smell of the garlic can be unbearable, workers are given (and they take it!) 10minutes of break time every hour (i.e., 50 minutes of work, 10 minutes of break). How many minutes should Stench use as a standard quantity of labor time per container of yogurt?4.The following direct labor information pertains to the manufacture of product Glu:Time required to make one unit2 direct labor-hoursNumber of direct labor workers50 workersNumber of productive hours per week, per worker40 hoursWeekly wages per workerP5,000Workers’ benefits treated as direct labor costs20% of wagesWhat is the standard direct labor cost per unit of product Glu?a.P150c.P300b.P120d.P240

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