80.2K

Verified Solution

Link Copied!

Compute the direct-material price and efficiency variances for each of the three inputs Amak, Brill, and Comas and the total price and efficiency variances.

Compute the direct-Labor price and efficiency variances.

Compute the direct-material mix and yield variances for each of the three inputs and the total mix and yield variances.

Assignment #2 Part 1: analysis(30marks):You mayworknagroup of up to4people, Annapolis Sticky Division manufactures and sells two special purpose adhesives, Yum and Zob, The two products emerge from the same production process, which requires three inputs materials: Amak, Brill, and Comad. The division developed standard costs for these two adhesives as follows: (these are standard costs to produce 10 units of output: 7 units of Yum and 3 units of Zob). Materials - Amak 6 kilograms at $2.40 per kilogram Materials-Brill Materials-Comad 1 kilogram at $5.15 per kilogranm Total materials input 11 kilograms Labour (applied at $5.60 per kilogram x 11 kilograms) Overhead - Variable (applied at $2.80 per kilogram x 11 kilograms) Overhead - Fixed (applied at $5.00 per kilogram x 11 kilograms) Joint costs to produce 10 units of output (7 Yum; 3 Zob) $14.40 16.80 5.15 S36.35 $61.60 4 kilograms at $4.20 per kilogram 30.80 55.00 $183.75 Cost assigned to the two joint products Total Joint costs* Standard cost per Product Units output Market value per kilogram $20 35 unit $15 s140 $105.00 78.75 $245 $183.75 Joint costs arte allocated to the products on the basis of market value. 7 units 3 units 10 units Yum Zob 105 $26.25 Normal monthly volume is 11,000 kilograms of input materials processed or 10,000 units output of both Yum and Zob. Some variations of input quantities are permissible without affecting the quality of the finished products. Materials are purchased from another division and are readily available; therefore, very little raw materials stock is kept by Strathcona Sticky Division. Material prices are negotiated annually between the divisions. All production is finished daily; therefore, there is no work in process inventories

Answer & Explanation Solved by verified expert

See Answer