Cole laboratories makes and sells a lawn fertilizer called Fastgro
Not what you're looking for?
Cole laboratories makes and sells a lawn fertilizer called Fastgro. The company has developed standard costs for one bag of Fastgro as follows:
Standard
Standard Quantity Cost per Bag
Direct material 20 pounds $8.00
Direct labor 0.1 hours 1.10
Variable manuf. overhead 0.1 hours .40
The company had no beginning inventories of any kind on Jan. 1. Variable manufacturing overhead is applied to production on the basis of direct labor hours. During January, the following activity was recorded by the company:
Production of Fastgro: 4,000 bags
Direct materials purchased: 85,000 pounds at a cost of $32,300
Direct labor worked: 390 hours at a cost of $4,875
Variable manufacturing overhead incurred: $1,475
Inventory of direct materials on Jan. 31: 3,000 pounds
22. The materials price variance for January is:
A) $1,640 F.
B) $1,640 U.
C) $1,700 F.
D) $1,300 U.
Could you please define what CMPV is?
CMPV = (.38-.40) 85000=1700F
Also what exactly is this second calulations for?
AP=32300/85000, SP = 8.00/20lbs
I have prepared the following: Check my work please!
(Cost of Materials Price Variable) CMPV = (.38-.40) 85000=1700F
(.38-.40) =-.0.2*85000=-1700 or (1700)
(The bottom calculation helped me get my top calculation)
AP=32300/85000= .38 Direct materials purchased: 85,000 pounds at a cost of $32,300
SP = 8.00/20lbs=.40 Direct material 20 pounds $8.00
Purchase this Solution
Solution Summary
The expert examines Cold laboratories making and selling lawn fertilizers called Fastgo.
Solution Preview
MPV = (AP - SP) AQ
Where,
MPV is Material Price Variance
AP is Actual unit price of materials
SP is Standard unit price of materials
AQ is Actual quantity of materials purchased
In the given question the data ...
Education
- Chartered Accountant (Equivalent to CPA in US), Institute of Charted Accountants of India
- Bachelor of Commerce, West Bengal University
Recent Feedback
- "I got this feedback and I wanted to know if you can explain it to me. I noticed something within your workings which I believe is incorrect. It looks like you've mistaken the Debt ratio for the Equity Multiplier. You've done a calculation to determine Return on Equity (ROE) but if you take a look at the ratios provided for us you'll see ROE listed on the bottom line already. You can use ROE, Profit Margin and Total Asset Turnover to figure out the Equity Multiplier amount. Equity multiplier is not provided for us and we need to calculate it. I really hope this is helpful to you. "
- "Very attentive to detail. Answers are designed in easy to understand format."
- "Fast response and thorough answer"
- "thank you very much! "
- "thank you so much !!!!!!!"
Purchase this Solution
Free BrainMass Quizzes
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.
Learning Lean
This quiz will help you understand the basic concepts of Lean.
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.