Sierra Snacks produces snack mixes for the gourmet and natural foods market. Click the icon to view the budgeted quantities and budgeted prices of direct materials) In the current period, Sierra Snacks made 90 batches of Templing Trail Mix with the following actual quantity, cost, and mix of inputs: Click the icon to view the actual quantity, cost, and mix of inputs.) Read the requirements Requirement 1. What is the budgeted cost of direct materials for the 90 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 s 2 per cup 120 Dried Cranberries 30 cups S 3 percup 90 Chocolate pieces S 4 per cup 40 100 250 Total 100 cups 60 CM 10 cups Now select the formula and enter the amounts to calculate the budgeted cost of direct materials for 90 batches Budgeted cost par batch Number of batches = Budgated cost of 90 batches 250 90 225001 Requirement 2. Calculate the total direct materials afficiency variance Select the formula and enter the amounts to calculate the total direct materials elliciency variance. Identify each variance as either factorable (F) or unfavorable (U). Enter any quantity amounts as the number of cups. Act. = Actual Budg = Budgeted. Cran. = Cranberries, Effic. = Efficiency. Qty. = Quantity, Var. = Variance.) Adaty of inputs used Budg qty of input of allowed )* Budg price of input Effic var Peanuts 6405 60 2 1 = 12690 U Cran. 2520 30 3 7470 U Chocolate 1260 10 4 >- Total 25610 U = 5000 U Requirement 3. Calculate the total direct materials mix and yield variances Begin by selecting the formula and entering the amounts to calculate the total direct materials mix variance. Identify each variance as either factorable (F) or unfavorable (U) (Enter any percentages in decimal format to two decimal places, O.XX. Abbreviations used: A5 of DM input = Actual price of direct materials input, ADM mix % = Actual direct materials input mix percentage, ATQ Inputs used= Actual total quantity of all direct materials inputs used, BS of DM Input = Budgeted price of direct materials input, BDM mx 4 = Budgated direct materials input mix percentage, BTQ inputs allowed = Budgeted total quantity of all direct materials inputs allowed for actual output, Mix var = Direct materials mix variance for each inpul) ATQ inputs used BTQ Inputs allowed) AT Inputs used = Moc var. Peanuts Cran. J 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 percentages in decimal format to two decimal places, O.XX. Abbreviations used: As of DM input = Actual price of direct materials input, ADM mbc = Actual direct materials input mix percentage ATQ inputs used= Actual total quantity of all direct materials inputs used, BS of DM input = Budgeted price of direct materials input, BOM mix % = Budgated direct materials input mix percentage, BTQ inputs allowed - Budgeted total quantity of all direct materials inputs allowed for actual output, Yield var. - Direct materials mix variance for each input.) J = Yeld var Peanuts Cron. J) Chocolate 15 IN Total Requirement 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 90 batches produced this period? Are the variancas larga enough to investigate? How do the variances calculated in requirement 3 relate to those calculated in requirement ? O A. The total mix varlance combines with the total yield variance to equal the total efficiency variance OB. The total mix variance less the total yield variance equals the total efficiency variance OC. The total yield variance less the total mix variance equals the total efficiency variance. OD. The total efficiency variance combines with the total mix variance to equal the total yield variance What do the variances calculated in requirement 3 tell you about the 90 batches produced this period? The direct materials mix variance indicates that the actual product mix The direct materials yield variance occurs because the amount of total inputs needed the budgeted amount expected to produce 90 batches Are the variances large enough to investigate? The mbs variance since it is important element of the product's appeal to customers. The direct materials yield variance is , which is considered an largely due to the use of be investigated Next 2520 30 3 747010 1260 - Data table ate the total direct mate ormula and entering the in decimal format to tw entage, ATQ inputs use Is input mix percentage . Lits used BTQ ir 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: either factorable (F) aterials input, ADM mis price of direct materia practual output, Mix v Peanuts Dried Cranberries Chocolate pieces Quantity per Batch Price per Cup 60 cups $ 2 3 10 cups $ 30 cups $ $ 4 - X Data table and enter the a format to two de outs used= Actu entage, BTQ in F) or unfave K% = Actua put, BDM Direct mat 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 Quantity Actual Cost Actual Mix Peanuts 6,405 cups $ 11,977 61% Dried Cranberries 2,520 cups 8,014 24% 1,260 cups 4,939 12% Chocolate pieces 10,500 cups $ 24,930 100% Total actual d in require the variances s period? Are til alculated in reqy Print Done iance combines Fiance less the terrororoquo motery room. ariance less the total mix variance equals the total efficiency variance