A Swiss firm, Smythe and Yves (S&Y), manufactures toiletries such as hand soaps, shampoo, conditioners, and a mouthwash that hotels purchase and place in the rooms for their guests. S&Y uses a standard cost system. One of the fragrances the company inserts in some bath and face soaps uses a particular scent, VBN032, that has a standard price of 600 CHF (Swiss francs) per liter. S&Y purchased 15 liters of VBN032 for 9,225 CHF. Prior to this purchase, S&Y had no VBN032 in inventory. Immediately upon delivery of VBN032, three jobs (#K8925, #G1342, and #R9823) were started that used VBN032. The following table summarizes the actual and standard quantities (in liters) of VBN032 in the three jobs:
| Actual | Standard | |
| Quantity | Quantity | |
| #K8925 | 4.38 | 4.19 |
| #G1342 | 6.46 | 6.35 |
| #R9823 | 3.78 | 3.61 |
Required:
a. Prepare a table that reports how the 9,225 CHF purchase cost of VBN032 is distributed across S&Y’s manufacturing accounts after VBN032 has been used in the three jobs.
b. Based on your analysis in part (a), what observations would you offer to management?
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