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Variance Analysis:Fresh Bites manufactures Caesar salads. In January, the company initially budgeted to purchase and use 2 0 , 0 0 0 kilograms of lettuce

Variance Analysis:Fresh Bites manufactures Caesar salads. In January, the company initially budgeted to purchase and use 20,000 kilograms of lettuce at $1.18 per kilogram, with a budgeted output of 70,000 salads. However, actual purchases for January totaled 22,000 kilograms, and the actual usage amounted to 21,000 kilograms at $1.10 per kilogram. The actual output for the month was 71,400 Caesar salads.Input rate variances are isolated upon purchase, input efficiency variances are isolated at the time of usage.Required:1. Compute the rate and efficiency variances for direct materials for the month. Please state if variances are favourable or unfavourable, (6 Marka)

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