The cost accountant for blue pharmaceuticals has informed, Ask an Expert

Accounting

The cost accountant for blue pharmaceuticals has informed you that the company's materials quantity variance for the drug allegro was exactly equal to its materials price variance for the year. The company's normal level of production is 50 batches of Allegro per year. However, due to uncertainties regarding foundation funding, it produced only 25 batches during the current year. Other cost information regarding allegro's directmaterials is as follows:

Standard price par gram ofmaterial...............................................................$60

Actual kilograms purchased and used during the year..................................100kg

Actual cost of materials purchased during the period...............................$6,000,000

Number of grams per kilogram...............................................................1,000grams

a. Compute blue's materials price variance.

b. Compute the standard quantity of materials allowed per batch of allegro produced.

c. Why would you not expect blue to have a large materials quantity variance?

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9797595

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question as the first step of your final project select

Question: As the first step of your final project, select three companies to evaluate for determining which is in the best financial health and would, therefore, be the most profitable investment. • What considerations m ...

Question - having trouble understanding the below problem

Question - Having trouble understanding the below problem. After reviewing material, I still cannot determine answer. Consider the following example. Bonds with a term of 5 years and face value of $1,000,000 are issued o ...

Question - in march stinson company completes jobs 10 and

Question - In March, Stinson Company completes Jobs 10 and 11. Job 10 cost $27,700 and Job 11 $40,500. On March 31, Job 10 is sold to the customer for $40,500 in cash. Journalize the entries for the completion of the two ...

Question - the blending department of luongo company has

Question - The Blending Department of Luongo Company has the following cost and production data for the month of April. Costs: Work in process, April 1 Direct materials: 100% complete $100,000 Conversion costs: 20% compl ...

Accounting fundamentals assignment -financial statement

Accounting Fundamentals Assignment - Financial Statement Analysis - This assignment involves analysing the financial statements and other information relating to a number of Australian public companies. These companies a ...

Question - the following are reported amounts from ellis

Question - The following are reported amounts from Ellis Company's multiple-step income statement: Cost of merchandise sold $199,840 Merchandise inventory 139,890 Sales 307,750 Sales discounts 5,850 Sales returns 11,690 ...

Question - kramer corp reported the following sale and

Question - Kramer Corp. reported the following sale and purchase transactions related to a specific product in January 2017: Date Transaction Quantity Unit Cost Unit Sales Price Jan 01 Beginning inventory 5 $90 Jan 03 Sa ...

Question - jalisco corporation has net income of 281000 for

Question - Jalisco Corporation has net income of $281,000 for the year ended December 31, 2010 and common shares outstanding of 100,000. The company did not issue or repurchase additional common shares during the year. J ...

Question - randolph company has two departments department

Question - Randolph Company has two departments (Department A and Department B) for Job #111. As cost drivers used to apply overhead to products, the Department A uses machine-hours and the Department B uses direct labor ...

Question household budget1create a simple household budget

Question: Household Budget 1. Create a simple household budget, including all income and expenses. There are various templates available online to help you do this. Find one that you feel comfortable with and that fits y ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Accounting Basics Expert