Actual Actual Prices:  S 3.8 45,750 $10.60 =   $1,842,810 US 5.7 45,750 $7.80 =   2,034,045 $3,876,855 $34,770 F rate Actual Standard Prices:  S 3.8 45,750 $10.50 =   $1,825,425 US 5.7 45,750 $ 8.00 =   2,086,200 $3,911,625 $108,656 U mix Standard Qty. Actual Mix Standard Prices:   S 30% 434,625* $10.50 =   $1,369,069 US 70% 434,625 $ 8.00 =   2,433,900 $3,802,969 $200,156 F yield Standard Standard:  S 30% 457,500** $10.50 =   $1,441,125 US 70% 457,500 $ 8.00 =   2,562,000 $4,003,125 *(45,750 9.5 = 434,625)  **(45,750 10 = 457,500)  DIF: Difficult OBJ: 7-6 9. Peoria Corporation produces a product using the following standard proportions and costs of material: Cost Per Pounds Pound Amount Material A 50 $5.00 $250.00 Material B 40 6.00 240.00 Material C 60 3.00 180.00 150 4.4667 $670.00 Standard shrinkage (33 1/3%) 50 Net weight and cost 100 6.70 $670.00 A recent production run yielding 100 output pounds required an of: Cost Per Amount Pound Material A 40 $5.15 Material B 50 6.00 Material C 65 2.80 Required: Material price, mix, and yield variances. ANS: MATERIAL PRICE VARIANCE MATERIAL A ($5.15 - 5.00)  40 = $ 6 U
Actual  Actual Prices: S 3.8  45,750  $10.60 = $1,842,810 US 5.7  45,750  $7.80 = 2,034,045 $3,876,855 $34,770 F rate Actual  Standard Prices: S 3.8  45,750  $10.50 = $1,825,425 US 5.7  45,750  $ 8.00 = 2,086,200 $3,911,625 $108,656 U mix Standard Qty.  Actual Mix  Standard Prices: S 30%  434,625*  $10.50 = $1,369,069 US 70%  434,625  $ 8.00 = 2,433,900 $3,802,969 $200,156 F yield Standard  Standard: S 30%  457,500**  $10.50 = $1,441,125 US 70%  457,500  $ 8.00 = 2,562,000 $4,003,125 *(45,750  9.5 = 434,625) **(45,750  10 = 457,500) DIF: Difficult OBJ: 7-6 9. Peoria Corporation produces a product using the following standard proportions and costs of material: Pounds Cost Per Pound Amount Material A 50 $5.00 $250.00 Material B 40 6.00 240.00 Material C 60 3.00 180.00 150 4.4667 $670.00 Standard shrinkage (33 1/3%) 50 Net weight and cost 100 6.70 $670.00 A recent production run yielding 100 output pounds required an of: Amount Cost Per Pound Material A 40 $5.15 Material B 50 6.00 Material C 65 2.80 Required: Material price, mix, and yield variances. ANS: MATERIAL PRICE VARIANCE MATERIAL A ($5.15 - 5.00)  40 = $ 6 U
Ch07%20Standard%20Costing%20and%20Variance%20Analysis.docx