Hohner Harmonica Co. manufactures harmonicas. One of the companys products is a blues harmonica that requires a
Question:
Hohner Harmonica Co. manufactures harmonicas. One of the company’s products is a blues harmonica that requires a special type of metal. During the quarter ending June 30, the company manufactured 1,000 harmonicas, using 600 ounces of metal. The metal cost the company $2,400
According to the standard cost card, each harmonica should require .5 ounces of metal at a cost of $5 per harmonica.
Required: (10 points)
What is the standard quantity of metal (SQ) that is required to make 1,000 harmonicas?
What is the standard materials cost allowed (SQ x SP) to make 1,000 harmonicas?
What is the materials spending variance?
What is the materials price variance and the materials quantity variance?
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer