11. For the dry ingredients what are the material mix and yield variances respectively?

A. $270 favourable/$270 unfavourable

B. $360 unfavourable/$360 unfavourable

C. $360 favourable/$360 unfavourable

D. $360 favourable/$360 favourable

E. $270 unfavourable/$270 unfavourable

12. Jam Life Inc. manufactures jam products. It makes a mixed fruit and berry jam by blending strawberries, peaches, and apricots.

Budgeted costs to produce 100,000 kilograms of jam in September were:

Ingredient	Kilograms	Cost per Kg.	Total Cost
Strawberry	80,000 kg.	$1.25	$100,000
Peach	100,000 kg.	$1.80	$180,000
Apricot	220,000 kg.	$2.25	$450,000

Actual costs to produce 100,000 kilograms of jam in September were:

Ingredient	Kilograms	Cost per Kg.	Total Cost
Strawberry	105,000 kg.	$1.15	$120,750
Peach	105,000 kg.	$1.80	$189,000
Apricot	210,000 kg.	$2.10	$441,000

Required:

1. Calculate the total direct materials rate and efficiency variances.

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

3. Jam Life's largest competitor sells a 500 gram jar of mixed fruit and berry jam for $4.50 . If Jam Life's management wants to meet this price and cover monthly fixed costs of $180,000 then what will be the company's margin of safety? (Assume that Jam Life will continue to use the budgeted mix of ingredients..

  

Answer rating: 100% (QA)

SOLUTION 1 Calculate the total direct materials ... View the full answer