Please show working / The following standard costs were developed for one of the

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/ The following standard costs were developed for one of the products of Razmatazz Corporation: STANDARD COST CARD PER UNIT Materials: 4 feet × S 14.25 per foot Direct labor: 8 hours $10 per hour Variable overhead: 8 direct labor hours x $8 per hour Fixed overhead: 8 direct labor hours x $12 per hour Total standard cost per unit 57.00 80.00 64.00 $297.00 The following information is available regarding the company's operations for the period Units produced: 11,000 52,000 feet @ $13.95 per foot 40,000 feet 84,000 hours costing $840,000 Materials purchased Materials used: Direct labor: Manufacturing overhead incurred: $756,000 $1,000,000 Variable Fixed Budgeted fixed manufacturing overhead for the period is $960,000, and the standard fixed overhead rate is based on expected capacity of 80,000 direct labor hours. Required: a. Calculate the materials price variance. b. Calculate the materials usage variance. c. Calculate the direct labor rate variance d. Calculate the direct labor efficiency variance. e. Calculate the variable manufacturing overhead spending variance. f. Calculate the variable manufacturing overhead efficiency variance. g Calculate the fixed manufacturing overhead spending variance. h. Calculate the fixed manufacturing overhead volume variance.

Explanation / Answer

The criteria to be used to select the test cities for the new product “Super Sonic Taco” are as follows –

Ideal generation (In this case men under 30)
Product development – information gathered from market research about target audience / consumer about their age, gender, location, social class, their like and dislikes. It will be also helpful for making decision about price ($ 1.19, in this case),packaging, display & distribution
Testing – market research can help gauge the consumer and suppliers reactions of the new product at kitchen development stage and when the product is near to completion.
Lunch- once the product is lunched, it is important to keep an eye on the product whether further changes are necessary.
The two important things are there that are-

The consumers – who is going to eat/drink this food products
The Place of selling – the place and the person who is selling this
The information about the consumer trend, attitudes, life styles and shopping behavior can be gathered from consumer market research. The vital parameters are –

Acute product attributes
Performance of product against competitors product
Preference on products name
Effectiveness of packing design
Acceptability of price
Preferred purchase point (where product sells best)
The key questions must be asked from the consumers are –

Who are the consumers
What the eating convenient food, organic/healthy food, premium products
Where & where they are eating – at workplace, while traveling, at home etc.
Why the consumers wants the product – for family meal, for entertaining etc.
How the product will effects the consumers life
The Following four cities can be recommended for the test lunch because the and highly populated urban areas with good number of population of male of under 30 years; which is the target group for this product, the per capital income is also good of these cities and they have the culture of fast food so the chances of acceptability are more in these cities.

Mexico city
Guadalajara
Monterrey
Puebla

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