I have answered part A and B, but I am lost as to what I need to put on part C and D. Thanks
28. Natural Gardens make recyclable pots for plants and uses JIT to manage inventories and production. The following are standards for a typical one-gallon pot:
Annual Material Standards
32 ounces of Component X x $0.02 $0.64
2 ounces of Component Y x $0.05 $0.10
Current Material Standards
27 ounces of Component X x $0.02 $0.54
4 ounces of Component Y x $0.05 $0.20
In-house experiments indicated that changing the material standard would make the pots stronger, so the company issued an engineering change order for the product in February; this ECO established the current material standards. March production was 8,000 pots. Usage of raw material (all purchased at standard price) in March was 220,000 ounces of Component X and 31,000 ounces of Component Y.
- a. Calculate the material quantity variance. Annual standard Component X (32 ounces x 0.02) 0.64 Component Y (2 ounces x 0.05) 0.10 0.74Current standard Component X (27 ounces x 0.02) 0.54 Component Y (4 ounces x 0.05) 0.20 0.74 Production during month 8,000 Usage during month Component X (220,000 x 0.02) 4,400 Component Y (31,000 x 0.05) 1,550 Total cost of material used 5,950Material quantity variance Component X (8,000 x 27 x .02) 4,320 Component Y (8,000 x 4 x .05) 1,600 Material cost at current standard 5,920 Actual material cost (5,950) Material quantity variance $ 30 F
- b. Calculate the ECO variance.Engineering change variance for material Component X (8,000 x 32 x .02) 5,120 Component Y (8,000 x 2 x .05) 800 Material cost at annual standard 4,320 Material cost at current standard (5,920)ECO variance 1,600 U
- c. Summarize the company?s effectiveness in managing March production costs.
- d. Comment on the circumstances in which a company would institute an ECO that results in the expected product cost being unchanged.
If company follow exact current material standard then its use of Component X would have been
216,000 ounces (27 x 8,000) and 32,000 ounces of Component Y (4 x 8,000) with a total cost of...
This question was answered on: Sep 13, 2020Buy this answer for only: $15
This attachment is locked
Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
About this QuestionSTATUS
Sep 13, 2020EXPERT
GET INSTANT HELP/h4>
We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.
You can also use these solutions:
- As a reference for in-depth understanding of the subject.
- As a source of ideas / reasoning for your own research (if properly referenced)
- For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
NEW ASSIGNMENT HELP?
Order New Solution. Quick Turnaround
Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.
WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN A DEADLINE.