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After struggling to feed their livestock due to the closure of the South African borders as a result of COVID19, a number of farmers in the Northern part of Namibia decided to form a company (Farmer Co) to produce their own animal feed to use and sell to other farmers in Namibia. Farmer Co produces Omes Mix, an animal feed made by mixing and heating three ingredients: All Green, Better Growth and Green Organics. The company uses a standard costing system to monitor its costs. The standard material cost for 100 kg of Omes Mix is as follows: Input Kg Cost per kg Cost per 100 kg of Omes (N$) (N$) All Green 40 2.00 80.00 Better Growth 60 5.00 300.00 Green Organics 20 1.00 20.00 Total 120 400.00 Notes (1) The mixing and heating process is subject to a standard evaporation loss. (2) All Green, Better Growth and Green Organics are agricultural products and their quality and price varies significantly from year to year. Standard prices are set at the average market price over the last five years. Farmer Co has a purchasing manager who is responsible for pricing and supplier contracts. (3) The standard mix is set by the finance department. The last time this was done was at the product launch which was five years ago. It has not changed since. Last month 4,600 kg of Omes Mix was produced, using the following inputs: Input Kg Total cost ($) Cost per kg ($) All Green 2,200 1.80 3,960 Better Growth 2,500 6.00 15,000 Green Organics 920 1.00 920 Total 5,620 19,880 What is the material yield variance for Better Growth in NC Leave a message