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

Budgeted costs to produce 400,000 kilograms of jam in September were:

Ingredient	Budgeted Input Kilograms	Input Mix %	Cost per Kg.	Total Cost
Strawberry	80,000 kg.	20%	$1.25	$100,000
Peach	100,000 kg.	25%	$1.80	$180,000
Apricot	220,000 kg.	55%	$2.25	$450,000
Total	400,000 kg.	100%		$730,000

Actual costs to produce 400,000 kilograms of jam in September were:

Ingredient	Actual Input Kilograms	Actual Input Mix %	Cost per Kg.	Total Cost
Strawberry	105,000 kg.	25%	$1.15	$120,750
Peach	105,000 kg.	25%	$1.80	$189,000
Apricot	210,000 kg.	50%	$2.10	$441,000
Total	420,000 kg.	100%		$750,750

So far, the Budget Analyst at Jam Life has completed the Direct Material Rate Variance, Efficiency Variance and Flexible Budget Variance as shown below for the strawberries in using the formula method and the chart method.

Rate (Price) variance = (actual rate of input - budgeted rate of input) x actual quantity of input Strawberry rate variance = ($1.15 - $1.25) x 105,000kg = $10,500F

Efficiency variance = (actual quantity of input used - budgeted quantity of input allowed for actual output) x budgeted rate of input. Strawberry efficiency variance = (105,000 kg. - (80,000kg/400,000kg mixed jam x 400,000 kg jam)) x $1.25 = $31,250 F

Flexible Budget Variance = actual result amount - flexible budget amount. Strawberry flexible budget variance = (105,000 kg x $1.15) - (.2 kg strawberries per kg of jam x 400,000 kg jam x $1.25) = $120,750 - $100,000 = $20,750 U

Required: Choose to solve the next two questions using either theTemplate Chart method (Method 1)in Excel or choose theFormula Method (Method 2)in Excel or the space provided. Do not do both methods.

Method 1:Complete the Excel Chart for Mix and Yield and then complete the Variances including name of the variance and mark if they are favourable or unfavourable(8 marks using the Excel Template chart method - 1 mark for each box on the template chart and 1 mark for each variance including F or U).

Method 2:Use Excel or the space provided to complete the formulas for Mix and Yield and calculate the variance including F or U). (8 marks using the formula method).