Assume you are making a product that has two ingredients, oil and vinegar, which are substitutable. The

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Assume you are making a product that has two ingredients, oil and vinegar, which are substitutable. The recipe for one batch of 10 gallons is oil—S gallons @ $6 a gallon and vinegar—S gallons @ $10 a gallon. At the end of the month, you find the company made 500 gallons of finished products using 210 gallons of oil costing $5.90 a gallon and 300 gallons of vinegar costing $11 a gallon. What is the mix variance for each of the two ingredients?

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Cost Accounting Using A Cost Management Approach

ISBN: 9780256174809

6th Edition

Authors: Letricia Gayle Rayburn, Martin K. Gay

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