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Grains Galore Cereal Co. produces a cereal called Toasty Fruits, which is a mix of cranberries, raisins and rice flakes. It has set the following

Grains Galore Cereal Co. produces a cereal called Toasty Fruits, which is a mix of cranberries,

raisins and rice flakes. It has set the following standards to produce 50 kilograms of cereal:

IngredientKilograms Cost per kilogram Total Cost

Rice flakes30$2.00$60.00

Raisins 18$2.5045.00

Cranberries12$30.00360.00 60

$ 465.00

At the end of the month, the operations manager reported the following details relating to

the production of 2,600 kilograms of Toasty Fruits cereal:

IngredientKilograms Cost per kilogram Total cost

Rice flakes1,820$1.85 $3,367.00

Raisins 910 $2.60 2,366.00

Cranberries770$33.50 25,795.00

3,500 $ 31,528.00

All prices remained the same for the period and Grains Galore operates on a just-in-time inventory

basis with negligible beginning and ending inventories.

What were the mix and yield variances for the month?

a)Mix variance, $1,684.80 U; Yield variance, $3,150.20 U

b)Mix variance, $1,890.00 U; Yield variance, $2,945.00 U

c)Mix variance, $1,890.00 U; Yield variance, $3,150.20 U

d)Mix variance, $2,110.50 U; Yield variance, $3,193.90 U

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