Question
Aquilino Beverage Company manufactures various sodas. One of their best sellers is their PeachBerry Schnapps which combines peach and raspberries. The product is manufactured in
Aquilino Beverage Company manufactures various sodas. One of their best sellers is their PeachBerry Schnapps which combines peach and raspberries. The product is manufactured in 100-gallon batches.
Each batch requires the following standard mix of flavors:
Peach 50 gal. @ $2.00 per gal.
Raspberry 50 gal @ $5.00 per gal.
Due to evaporation, for every 100-gallons that is started, 10 must be discarded, resulting in output of 90 gallons.
During the period, the company actually completed 900 gallons (9 batches) of finished PeachBerry Schnapps requiring 1,200 total gallons, 600 pounds of which was Peach.
1. The direct materials usage variance for PeachBerry Schnapps during the period was $_________________
2. The mix variance for PeachBerry Schnapps during the period was: $_______________________
3. The yield variance for PeachBerry Schnapps during the period was: $_______________________
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