Material price, mix, and yield variances Lemon-Yellow makes a powdered lemonade mix, which it sells in two
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Material price, mix, and yield variances Lemon-Yellow makes a powdered lemonade mix, which it sells in two pound cans. The standard material costs are presented below:
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Quantity Price Total Material (Pound) (Pound) Cost Sugar .90 $ .20 $ .18 Lemon flavoring .70 1.80 1.26 Ascorbic acid .08 2.50 .20 Coloring .12 1.00 .12 Preservatives .20 .50 .10 Totals 2.00 $1.86 Actual production for the period was 5,000 cans of output. Material use and cost data are presented below: Quantity Total Material (Pounds) Cost Sugar 4,200 $ 924 Lemon flavoring 3,700 6,105 Ascorbic acid 460 1,288 Coloring 560 504 Preservatives 1,160 638 Totals 10,080 $9,459
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