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ammer Company produces jelly using strawberries and raspberries. Jammer developed the following standard mix for producing 120 gallons of jelly: Direct Material Mix Mix Proportion
ammer Company produces jelly using strawberries and raspberries. Jammer developed the following standard mix for producing 120 gallons of jelly:
Direct Material | Mix | Mix Proportion | SP | Standard Cost |
Strawberries | 128 lbs. | 0.80 | $0.50 | $64 |
Raspberries | 32 lbs. | 0.20 | $1.00 | $32 |
Total | 160 lbs. |
|
| $96 |
Jammer put a batch of 1,600 pounds of direct materials into process. Of the total, 1,120 pounds were strawberries, and the remaining 480 pounds were raspberries. The actual yield was 1,300 pounds.
- Calculate the standard mix (SM) in pounds for strawberries and for raspberries for this batch.
- Calculate the mix variance. Is the variance favorable or unfavorable?
- Calculate the yield ratio based on the standard amounts given.
- Calculate the standard cost per pound of the yield.
- Calculate the standard yield for actual input of 1,600 pounds.
- Calculate the yield variance. Is the variance favorable or unfavorable?
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