Logan Fruit Drink Company planned to make 210,000 containers of apple juice. It
ID: 2467148 • Letter: L
Question
Logan Fruit Drink Company planned to make 210,000 containers of apple juice. It expected to use two cups of frozen apple concentrate to make each container of juice, thus using 420,000 cups of frozen concentrate. The standard price of one cup of apple concentrate is $0.23. Logan actually paid $132,782.30 to purchase 428,330 cups of concentrate, which was used to make 211,000 containers of apple juice
A. compute actual price per cup of concentrate
B.Compute the standard quantity (number of cups of concentrate) required to produce the containers.
C. Compute the materials price variance and indicate whether it is favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance). Round your answer to 2 decimal places.)
D.
Compute the materials usage variance and indicate whether it is favorable (F) or unfavorable (U).(Select "None" if there is no effect (i.e., zero variance). Round your answer to 2 decimal places.)
Compute the materials usage variance and indicate whether it is favorable (F) or unfavorable (U).(Select "None" if there is no effect (i.e., zero variance). Round your answer to 2 decimal places.)
Explanation / Answer
SQSP AQSP AQAP
=422,000 x 0.23 =428,330 x 0.23 =132,782.30
=$97,060 =$98,516
SP = standard Price =$0.23
SQ= Standard Quantity required for actual production
= Standard Quantity for one unit of juice x no of units produced
=2 x 211,000=422,000 cups
AQAP= Actual Cost= $132,782.30
AQ= Actual Quantity used= 428,330
AP= Actual Price=AQAP/AQ =132,782.30/428,330=$0.31
=- $34,266.3 U
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