Nature's Snacks produces snack mixes for the gourmet and natural foods market.

In the current period, Nature's Snacks made 130 batches of Tempting Trail Mix with the following actual quantity,

cost, and mix of inputs:

1. What is the budgeted cost of direct materials for the 130 batches?

2. Calculate the total direct materials efficiency variance.

3. Calculate the total direct materials mix and yield variances.

4. How do the variances calculated in requirement 3 relate to those calculated in requirement 2? What do the variances calculated in requirement 3 tell you about the 130 batches

produced this period? Are the variances large enough to investigate?

Data table - X Its most popular product is Tempting Trail Mix, a mixture of peanuts, dried cranberries, and chocolate pieces. For each batch, the budgeted quantities and budgeted prices are as follows: Quantity per Batch Price per Cup Peanuts 60 cups 1 $ $ Dried cranberries 30 cups N Chocolate pieces 10 cups $ 3 - Data table Small changes to the standard mix of direct material quantities do not significantly affect the overall end product. In addition, not all ingredients added to production end up in the finished product, as some are rejected during inspection. Actual Cost Actual Mix Peanuts $ 8,008 65% Actual Quantity 9,100 cups 3,500 cups 1,540 cups Dried Cranberries 25% 7,630 4,512 Chocolate pieces 11% 14,000 cups $ 20,150 100% Total actual Now seled the formulaiend enter the amount to close the budgeted cont of died materials for 130 batch Bout of the Requirement authored mene var Beled Before and enter the amounts to cut the tractarea eficiency variance. Werely each wunce ut ather factors for unter die Urar y nuesta nuo pat Medran Canaries, ency Our Var Vara) Mwings and Pen Chan Chow Requirements. Crec marcas de la lingin by secting the file and entering the mounts to calculate the termine detacheer facile Forum Uyage in decimos word. As for ADMA mai repercATO Aduty of Me and out. Mempereen die erford Pean Cran Create Next, select the formula and enter the amounts to calculate the total direct materials yield variance. Identity each variance as other factorable (F) or unfavorable (U) (Enter any per Abbreviations used: As of DM input - Actual price of direct materials input, ADM mix % Actual direct materials input mix percentage, ATO inputs used Actual total quantity of Wild direct materials input. BDM mix - Budgeted direct materials input mix percentage, BTC inputs allowed Budgeted total quantity of all direct materials inputs allowed for actual o Yield var Peanuts ) Cran. ( Chocolate As of DM input Total ADM mix % Requirement ATQ inputs used fed in requirement 3 relate to those calculated in requirement 27 What do the variances calculated in requirement tell you about the enough to inve How do the va B$ of DM input 3 relate to those calculated in requirement 2? O A. The to BDM mix % Id variance equals the total efficiency variance B. The to ix variance equals the total efficiency variance C. The to BTQ inputs allowed se total yield variance to equal the total efficiency variance. OD. The total efficiency variance combines with the total mix variance to equal the total yield variance. nort2 There will be therto de What do the varios din regiment you about the 13the produced the The direct and indicate that the actual podem the budgeted amount expected to produce 130 batches Are the variare large enough to site? The mix variance gely materiale eld variance is bened wie imprese That Requirement 1. What is the budgeted cost of direct materials for the 130 batches? Begin by calculating the total budgeted number of cups and the budgeted cost of direct materials for one batch. Quantity for Total Cost for One Batch Price of Input One Batch Peanuts 60 cups $ 1 per cup 60 Dried cranberries $ 2 per cup 60 Chocolate pieces 10 cups $ 3 per cup 30 100 150 Total cups 30 cups Now select the formula and enter the amounts to calculate the budgeted cost of direct materials for 150 batches. Budgeted cost of 130 batches Requirement 2. Calculate the total direct materials efficiency variance. Select the formula and enter the amounts to calculate the total direct materials efficiency variance. Identify each variance as either GEGE Select the formula and enter the amounts to calculate the total direct materials officiency varianon. Identify each variance as either factorable (F) or unfavorable (U). (Enter an as the number of cups. Act. - Actual, Budg Budgeted, Cran. Cranberries, Effic Efficiency, Qty. - Quantity, Var Variance.) Act aty of Inputs used Budgety of input of allowed Budo price of input Emi var Peanuts >* Cran M Chocolate M Total Requirement 3. Calculate the tatal direct materials mix and yleid variances Begin by selecting the formula and entering the amounts to calculate the total direct materiais mix variance. Identity each variance as either factorable (F) or unfavorable (U). (Enter any percentages in decimal format to two decimal places, O.XX. Abbreviations used. As of DM input = Actual price of direct materials input. ADM mix % Actual direct materials input mix pero ATQ inputs used Actual total quantity of all direct materials inputs used, E$ of DM input Budgeted price of direct materials input, BOM mix% = Budgeted direct materials input mix pard BTQ inputs allowed Budgeted total quantity of all direct materials inputs allowed for actual output, Mix var. Direct materials mix variance for each Input) ) Mix var M Peanuts Cran. Chocolate Total Next, select the formula and enter the amounts to calculate the total direct materials yield variance. Identify each variance as either factorable (F) or unfavorable (U). (Enter any perc decimal format to two decimal places, O.XX. Abbreviations used: As of DM Input Actual price of direct materials input, ADM mbx % - Actual direct materials input mix percentage, AT usede Actual total quantity of all direct materials inputs used, BS of DM input-Budgeted price of direct materials input, BDM mix % - Budgeted direct materials input mix percentage allowed Budgeted total quantity of all direct materials inputs allowed for actual output, Yield vor. Direct materials mix variance for each input.) Yield var ) Peanuts Cran ) Chocolate Total Requirement 4. How do the variances calculated in requirement 3 relate to those calculated in requirement 27 What do the variances calculated in requirement tell you about the 130 batchu produced this period? Are the variances large enough to investigate? How do the variance calculated in requirement relate to those calculated in requirement 27 OA. The total mix variance less the total yield varlance equals the total efficiency variance. OB. The total yield variance less the total mix variance equals the total efficiency variance OC. The total mix variance combines with the total yield variance to equal the total efficiency variance. D. The total eficiency variance combines with the total mix variance to equal the total yield varianoe. What do the variances calculated in requirement 3 tell you about the 130 batches produced this period? The direct material mix variance indicates that the actual product me amount of total inputs needed the budgeted amount expected to produce 10 taches Are the variances large enough to investigato? The direct materiais yield Variance occurs because the since it is The mix varance the product's appeal to customers. The direct materials yold variance is which is considered an important element of Margely due to the use of be investigated