Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Company A manufactures a vegetarian chew biscuit for puppies. The dog biscuit uses a multigrain formula that sometimes varies depending on supplier cost and availability.

Company A manufactures a vegetarian chew biscuit for puppies. The dog biscuit uses a multigrain formula that sometimes varies depending on supplier cost and availability. The company produces a standard lot of 50,000 kilograms of biscuits. The standard for each batch is as follows:

Cost per kg kgs used

Whole wheat $1.20 30,000

Quinoa $2.50 15,000

Spelt $3.50 5,000

In May, Company A produced 50,000 kilograms of biscuits. The actual use of grain for the month was as follows:

Kg usedCost per kg

Whole wheat 27,500 $1.25

Quinoa 16,000 $2.40

Spelt 6,500 $3.25

In June, Company A produced a 51,500 kg batch of biscuits. The actual use of grain for the month was as follows: (Actual costs in June were back to standard)

Whole wheat 31,000

Quinoa 16,000

Spelt 5,000

Required

a) What is the total mix variance for May and for June?

b) What is the total yield variance for May and for June?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Fundamentals

Authors: John Wild

7th Edition

1260247864, 9781260247862

More Books

Students also viewed these Accounting questions

Question

Do not get married, wait until I come, etc.

Answered: 1 week ago

Question

Do not come to the conclusion too quickly

Answered: 1 week ago

Question

Engage everyone in the dialogue

Answered: 1 week ago