Grater Inc sells product A and product B

Grater Inc sells product A and product B. Revenue and cost information relating to the products follow: Product A Product B Selling Price per unit $48.00 $65.00 Variable expenses per unit $24.50 $29.20 Traceable fixed expenses per year $144,000 $101,500 Common fixed expenses in the company total $390,000 annually. Last year the company produced and sold 10,000 of Product A and 15,000 of Product B.

Prepare a contribution format income statement for the year segmented by product lines. Show details clearly.

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The standard cost of Product B manufactured by Mateo Company includes three units of direct materials at $5.00 per unit

ACC 560 Week 7 Assignment

E11-5 The standard cost of Product B manufactured by Mateo Company includes three units of direct materials at $5.00 per unit. During June, 28,000 units of direct materials are purchased at a cost of $4.70 per unit, and 28,000 units of direct materials are used to produce 9,000 units of Product B.

Instructions:
a) Compute the total materials variance and the price and quantity variances.

b) Repeat the question above, assuming the purchase price is $5.20 and the quantity purchased and used is 26,200 units.

Click here for the solution: The standard cost of Product B manufactured by Mateo Company includes three units of direct materials at $5.00 per unit