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A company makes fudge in a batch process, i.e. they prepare, mix and cook the ingredients in small batches, followed by a thorough cleanup of
A company makes fudge in a batch process, i.e. they prepare, mix and cook the ingredients in small batches, followed by a thorough cleanup of the equipment after each batch. For the month of July the company budgeted to make 20,000 lbs.in 200 batches; setup and cleanup costs regarding the batches were budgeted at $10,000 in total. Actual results for July were as follows: they made 24,000 lbs, in 180 batches; setup and cleanup costs regarding the batches cost $15,000 in total. The rate/price and efficiency variances associated with the batch making process are $6,000U efficiency variance; $0 rate/price variance $4,000U efficiency variance; $2,000 U rate/price variance $3,000F efficiency variance; $6,000 U rate/price variance $3,000U efficiency variance: $3,000 U rate/price variance
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