John\'s Weed-B-Gone yard service sprays lawns to rid them of weeds. John mixes t

Question

John's Weed-B-Gone yard service sprays lawns to rid them of weeds. John mixes the two chemicals Weed-X and Pest-O, in proportions depending on the climate and the particular weed problems of the season. A standard mix calls for a gallon of the mixture to combine equal parts of Weed-X and Pest-0. Weed-X has a standard cost of $8.00 per gallon and Pesto-O has a standard cost of $20.00 per gallon. Each gallon can treat 100 square yards of lawn. John expects to treat 900,000 square yards of lawn. For the past season, John treated 1,080,000 square yards. He used 6,600 gallons of Weed-X and 5,280 gallons of Pest-O. He paid a total of $51,150 for the Weed-X and $110,880 for the Pest-O. Required: (a) Compute the materials price and efficienoy variances for the season (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Do not round your intermediate calculations. Round "Efficiency variances" value to 2 decimal places.) Materials Price Efficiency Variances Weed-X Pest-O Total (b) Compute the materials mix and yield variances for the season, (Indicate the effect of each variance by selecting "F for favorable, "U" for unfavorable, and "None" for no offect (i.e., zero variance). Do not round your intermediate calculations. Round your answers to 2 decimal places.) Materials Mix Yield Variances Weed-X Pest-O Total

Explanation / Answer

Solution:

Standard price of Weed x = $8 per gallon

Standard price of Pesto O = $20 per gallon

Standard qty of Weed X for 10,80,000 Sq yard treatment = 1080000/100/2 = 5400 Gallon

Standard qty of Pest O for 10,80,000 Sq yard treatment = 1080000/100/2 = 5400 Gallon

Actual Qty of Weed X = 6600 Gallon

Actual Qty of Pesto O = 5280 gallon

Actual Cost of Weed X = $51,150

Actual Cost of Pesto O = $110,880

Actual price of Weed x = $51,150 / 6600 = $7.75 per gallon

Standard price of Pesto O = $110,880/5280 = $21 per gallon

Material price variance = (SP - AP) * AQ

Weed X = (8-7.75)*6600 = $1,650 F

Pest O = (20-21)*5280 = $5,280 U

Material Efficiency Variance = (SQ - AQ) * SP

Weed X = (5400 - 6600) * 8 = $9,600U

Pesto O = (5400 - 5280)*20 = $2,400 F

Material Mix Variance:

Total material Consumption = 6600 + 5280 = 11880

Consumption of chemical as per standard mix:

Weed X = 11880/2 = 5940 gallon

Pesto O = 11880/2 = 5940 gallon

Material mix variance = (Actual Mix - Standard Mix) * SP

Weed X = (6600 - 5940) * 8 = $5,280 U

Pesto O = (5280 - 5940) * 20 =$13,200 F

Material Yield variance:

Standard yield for total material input = 11880*100 = 1188000 Sq yards

Actual Yield = 1080000 Sq yard

Standard cost of treatment 100 sq yard = (8/2) +(20/2) = $14

Weed X = $4 per 100 sq yard, Pesto O = $10 per 100 Sq yard

Yield variance = (Actual Yield - Standard Yield) * SP

Weed X = (1080000 - 1188000) * 4/100 = $4,320U

Pesto O = (1080000 - 1188000) * 10/100 = $10,800 U

Related Questions

Navigate

• Browse (All)
• Browse J
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.