Magno cereal corporation uses a standard cost system to collect costs related to the production of its

Magno cereal corporation uses a standard cost system to collect costs related to the production of its "crunchy pickle" cereal. the pickle (materials) standards for each batch of cereal produced are 1.4 pounds of pickles at a standard cost of $3.00 per pound. during the month of august, magno purchased 78,000 pounds of pounds 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 the month of august? (points : 2) $1,500 unfavorable $18,000 favorable $19,500 unfavorable $54,000 unfavorable

Related Posts

This Post Has 3 Comments

  1. Externalities or spillover occurs when some of the benefits or the costs of production are not fully reflected in market demand or supply schedules.

  2. Option (B) is correct.

    Explanation:

    Standard quantity:

    Standard quantity of pounds required for 1 batch = 1.4 pounds

    During the month, no. of batches produced = 60,000

    Standard quantity required for 60,000 batches = 60,000 × 1.4

                                                                                   = 84,000 pounds

    Actual quantity used = 78,000

    Standard price per pound = $3 per pound

    Material quantity variance:

    = (Standard quantity - Actual quantity) × Standard price

    = (84,000 - 78,000) × $3 per pound

    = 6,000 × $3

    = $18,000 Favorable

Leave a Reply

Your email address will not be published. Required fields are marked *