8. Magno Cereal Corporation standard for each batch of cereal uses a standard co

Question

8. Magno Cereal Corporation standard for each batch of cereal uses a standard cost system for its "crunchy pickle" cereal. The materials produced is 1.4 pounds of pickles at a standard cost of $3.00 per pound the month of August, Magno purchased 78,000 pounds of pickles at a total cost of $253,500. Magno used all of these pickles to produce 60,000 batches of cereal. What is Magno's materials quantity variance for August? A) $1,500 Unfavorable B) $18,000 Favorable C) $19,500 Unfavorable D) $54,000 Unfavorable 9. The standard cost card for one unit of a finished product shows the foilowing Standard Quantity or Hours 12 feet 1.5 hours 1.5 hours Standard Price or Rate $ ? per foot $12 per hour $8 per hour Direct materials Variable manufacturing overhead r the total standard variable cost for one unit of finished product is s78, then the standard price per foot for direct materials is: A) $2 B) $3 C) $4 D) $5 10. Suver Corporation has a standard costing system. The following data are available for June: Actual quantity of direct materials purchased.. 24,000 pounds Standard price of direct materials.$.00 per pound Material price variance.. $6,000 Unfavorable Material quantity variance. $2,400 Favorable The actual price per pound of direct materials purchased in June was: A) $6.10 per pound B) $5.90 per pound C) $6.40 per pound D) $6.30 per pound 11. Bailey Corporation manufactures orange safety suits for road workers. The following information relates to the corporation's purchases and use of material for April: 12,000 yards 10,000 yards 10,800 yards Material used in production Standard material allowed for suits produced..... The company's materials price variance for April was $3,000 Favorable. Its materials quantity variance for April was $5,000 Favorable. What does the company use as a standard price per yard of material for its safety suits? A) $5.75 per yard B) $6.50 per yard C) $6.25 per yard D) $6.00 per yard

Explanation / Answer

Correct option=$18000 F

Explanation:

Standard quantity=std quantity per unit×actual output

=14×60,000

=84,000

Material quantity variance= std price ×(actual quantity-std quantity)

=$3×(78000-84000)

=$18,000 F

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