Question
Johnson Co. makes organic non-GMO vegetable seed packets for the chef/gardener market. The standard material is 0.84 ounces per seed packet at a cost of
Johnson Co. makes organic non-GMO vegetable seed packets for the chef/gardener market. The standard material is 0.84 ounces per seed packet at a cost of $0.88 per ounce. Johnson Co. budgeted to make 65,000 seed packets but due to high demand, they ended up making 71,000 packets. They paid $52,000 for 60,000 ounces of seed and used all but 3,000 ounces of this purchase in production during the period. What is their material efficiency variance for this period? Enter a favorable variance is a positive number and an unfavorable variance as a negative number.
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