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(10 marks) Biscuit Co. is a company that manufactures and sells sweetener made of honey, sugar and syrup. The standard materials usage and cost for
(10 marks) Biscuit Co. is a company that manufactures and sells sweetener made of honey, sugar and syrup. The standard materials usage and cost for one unit of sweetener (one packet) is as follows: Honey Sugar Syrup 20 grams at R0.02 per gram 15 grams at R0.03 per gram 10 grams at R0.025 per gram R0.40 R0.45 R0.25 R1.10 In the 3 months ended 30 April 2017, Biscuit Co produced 101 000 units of "runner" using 2 200kg of honey, 1 400kg of sugar and 1 050kg of syrup. Note there are 1 000 grams in a kilogram. REQUIRED Calculate mix and yield variances for the sweetener. (10) (SOURCE: BSR3A LAO 2017)
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