Question
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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