Direct materials price and efficiency variances, direct materials yield and mix variances, food processing. (50 minutes) Tropica, AB, processes tropical fruit into fruit salad mix, which it sells to a food-service company. Tropica has in its budget the following standards for the direct materials inputs to produce 8 kg of tropical fruit salad: klp5

REQUIRED 1. Calculate the total direct materials price and efficiency variances in October.
2. Calculate the total direct materials yield and mix variances for October.
3. Comment on your results in requirements | and 2.
4. How might the management of Tropica use information about the direct materials yield and mix variances?

Transcribed Image Text:

5 kg of pineapple at SFr 10 per kg 3 kg of watermelon at SFr 5 per kg 2 kg of mango at SFr 7.5 per kg 21211 10 SFr 50 15 15 SFr 80. Note that 10 kg of input quantities are required to produce 8 kg of fruit salad. No stocks of direct materials are kept. Purchases are made as needed, so all price variances are related to direct materials used. The actual direct materials inputs used to produce 5,400 kg of tropical fruit salad for the month of October were 3,640 kg of pineapple at SFr 9 per kg 1,820 kg of watermelon at SFr 6 per kg 1,540 kg of mango at SFr 7 per kg 7,000 SFr 32,760 10,920 10,780 SFr 54,460