Posted: January 3rd, 2022

P11-11 barberry, inc., manufactures a product called fruta. the

P11-11  Barberry, Inc., manufactures a product called Fruta. The company uses a standard cost system and has established the following standards for one unit of Fruta:

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Get My Paper

Standard Quantity

Standard price or Rate

Standard Cost

Direct materials

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Get My Paper

1.5 pounds

$6.00 per pound


Direct labor

0.6 hours

$12 per hour


Variable manufacturing overhead

0.6 hours

$2.50 per hour





During June, the company recorded this activity related to production of Fruta:


a. The company produced 3,000 units during June.

b. A total of 8,000 pounds of material were purchased at a cost of $46,000.

c. There was no beginning inventory of materials; however, at the end of the month, 2,000 pounds of material remained in ending inventory.

d. The company employs 10 persons to work on the production of Fruta. During June, they worked an average of 160 hours at an average rate of $12.50 per hour.

e. Variable manufacturing overhead is assigned to Fruta on the basis of direct labor-hours. Variable manufacturing overhead costs during June totaled $3,600.

The company’s management is anxious to determine the efficiency of Fruta production activities.



1. For direct materials:

a. Compute the price and quantity variances.

b. The materials were purchased from a new supplier who is anxious to enter into a long term purchase contract. Would you recommend that the company sign the contract?


2. For labor employed in the production of Fruta:

a. Compute the rate and efficiency variances.

b. In the past, the 10 persons employed in the production of Fruta consisted of 4 senior workers and 6 assistants. During June, the company experimented with 5 senior workers and 5 assistants. Would you recommend that the new labor mix be continued? Explain.

3. Compute the variable overhead rate and efficiency variances. What relation can you see between this efficiency variance and the labor efficiency variance?



Expert paper writers are just a few clicks away

Place an order in 3 easy steps. Takes less than 5 mins.

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
Open chat
Order through WhatsApp!
You Can Now Place your Order through WhatsApp

Order your essay today and save 30% with the discount code 2022DISCOUNT