Question
Annies Homemade sells six-ounce and eight-ounce servings of ice cream. Its standard ingredient cost is $0.25 per ounce. In an average week, Annies sells 1,050
Annies Homemade sells six-ounce and eight-ounce servings of ice cream. Its standard ingredient cost is $0.25 per ounce. In an average week, Annies sells 1,050 six-ounce servings and 450 eight-ounce servings. Based on recent research, the company estimates employees are inadvertently scooping one extra ounce of ice cream per six-ounce serving and one-and-a-half extra ounces per eight-ounce serving.
Required:
1. What is the standard quantity of ounces allowed per week for all six-ounce and eight-ounce servings combined?
2.How many ounces of ice cream are actually being served per week for all six-ounce and eight-ounce servings combined?
3. What is the average weekly materials quantity variance? (Input answer to the nearest penny.)
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