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REQUIRED INGREDIENTS QUANTITIES LABEL WHEAT OATS NUTS BLUEBERRIES STRAWBERRIES RAISINS Nuts Min 20% Min. 30% Min. 20% N/A NA NA Blueberry Min 20% Min 30% N/A Min 20% N/A N/A Strawberry Min 20% Min. 30% N/A N/A Min 20% N/A Raisin Min. 20% Min 30% N/A N/A N/A Min. 20% Original Min. 20% Min 30% N/A N/A N/A N/A Moed Min 20% Min 30% Minimum 30% (at least some of all fruitut) Figure 1: Muesli Manufacturing Label Regulations! Standard costs for a box of muesli consist of the standard cost of ingredients, standard labor costs, and standard variable overhead costs for each recipe. Standard costs are measured per case of muesli. There are 144 boxes of muesli per case. Problem Statement: Case Details Mr. Jack in production would like you to examine the standard cost variances from last month for the Nut muesli. Some new employees have been working on the production line and even though they have been trained, it is a good idea to keep an eye on trainees at least until they have been working for awhile. Mr. Jacks wants to be sure that if there are any problems with the production process, they are taken care of expeditiously and examination of standard cost variances is one way to detect departure from the normal (standard) processes and costs. Let's start by examining the 1kg (large) boxes of Nut muesli. Figure 3 shows the minimum required ingredients for nut muesli. Figure 2 shows the ingredients and standard costs in Muesli AG's nut muesli, RE Ali X17 A O 1 1 . G 1 1 Planned 18.00 1100 andard C PR Q entari Tu Quarter Tud The Man OM OM co 144 14 3 HO 1 1 30 0304 CH 4 C1 1100 11.400 1 PIMI 4:20 COM 100 OLE 22.11 47.30 47. SO ON whe 11 l 12 D Verveleerd 10 and I. 44,153.00 CI, 4140 20. 484 400.00 CLIO 2,118 40 cm 03 (1844 COM 11:00 PM END DH 16 EL DUR 3 Actus Production 151.300 www. A Check Band Quantity Sandu 101 M/ Varice DEL here IN Arts WE w w 16 18 Duet Maria an 14.00 15.00 cu 1000 0 151.400 151.100 0400 45.440 ne) > OT COM CH CA 21 23 DEI CORO 12.01.10 ER COD OE DO 0.00 CON Mohon OF CIN 3 TOM Oector Varie Tata Standard Con 22.00 255.225.20 actual PES 1002 DEO res IT chapter 10 + + Alignment Number Chord X17 Ces . XFx 1 + 6 M H 1 M O D 5 3 158.400 boses 1.100 Quantity Quanti per Standard Com perca Quantities for the Month Total Color the M perto 1 144 E 1 2 1 each 1 each 0.40 030 030 Nut 158.400 158,400 K 63.160 47.520 KE 47.520 KG 57.60 43.20 14.20 16 ) 17.20 C4032 (1043 C.74 (42.222 624434 materials OT COM CH CA 21 23 DEI CORO 12.01.10 ER COD OE DO 0.00 CON Mohon OF CIN 3 TOM Oector Varie Tata Standard Con 22.00 255.225.20 actual PES 1002 DEO res IT chapter 10 + + Alignment Number Chord X17 Ces . XFx 1 + 6 M H 1 M O D 5 3 158.400 boses 1.100 Quantity Quanti per Standard Com perca Quantities for the Month Total Color the M perto 1 144 E 1 2 1 each 1 each 0.40 030 030 Nut 158.400 158,400 K 63.160 47.520 KE 47.520 KG 57.60 43.20 14.20 16 ) 17.20 C4032 (1043 C.74 (42.222 624434 materials