99.Establishing standard cost amountsExplain why the determination of standard cost amounts should not be the sole responsibility of a company's cost accountant. 100.Standard cost system...

99.Establishing standard cost amounts


Explain why the determination of standard cost amounts should not be the sole responsibility of a company's cost accountant.

100.Standard cost system materials variances


Levron Corporation manufactures a line of cosmetics. The standard price of the ingredients in its beauty cream is $7 per ounce; the standard amount of material allowed per jar is 1.25 ounces. During December, 5,300 jars were produced, requiring 6,784 ounces of ingredients at a total direct materials cost of $37,312.


(a) Calculate the materials price variance for December. Indicate whether it is favorable (F) or unfavorable (U). $__________
(b) Who is responsible for this variance? _________
(c) Calculate the materials quantity variance for December. Indicate whether it is favorable (F) or unfavorable (U). $__________
(d) What is Levron Corporation's total materials variance for December? Indicate whether it is favorable (F) or unfavorable (U). $__________