Jam Life Inc. manufactures jam products. It makes a mixed fruit and berry jam by blending strawberries, peaches, and apricots. The standard production process requires 4 kg of raw materials to make 1 kg of finished product. 1 kg of finished product can be packaged into two 500 g jars.

Budgeted costs to produce 100,000 kilograms of jam in September were:

Ingredient Kilograms Cost per Kg. Total Cost Strawberry 80,000 kg. $1.25 $100,000 Peach 100,000 kg. $1.80 $180,000 Apricot 220,000 kg. $2.25 $450,000 Actual costs to produce 100,000 kilograms of jam in September were: Ingredient Kilograms Cost per Kg. Total Cost Strawberry 105,000 kg. $1.15 $120,750 Peach 105,000 kg. $1.80 $189,000 Apricot 210,000 kg. $2.10 $441,000