. Sandy's Snacks produces snack mixes for the gourmet and natural foods market. 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: Quantity per Batch 60 cups 30 cups Price per Cup $1 Peanuts Dried cranberries $2 Chocolate pieces 10 cups Small changes to the standard mix of direct materials reflected in the above 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. In the current period, Sandy's Snacks made 100 batches of Tempting Trail Mix with the following actual quantity, cost, and mix of inputs: Actual Quantity 6,720 cups 2,625 cups 1,155 cups 10,500 cups Actual Cost Actual Mix Peanuts $ 5,712 64% Dried cranberries 5,775 25% Chocolate pieces 3,350 11% $14,837 Total actual 100%

Q: The materials price variance should be computed when materials are purchased. Group of answer…

A: Variance: The difference between the actual cost or price and the budgeted (standard) cost or price…

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A: Standard price = Estimated Raw material cost / Estimated units Raw material efficiency variance =…

Q: The standards for direct materials are made up of which of the following components? a.variance…

A: The question is multiple choice question. Required  Choose the Correct Option.

Q: How are overhead variances useful in nonmanufacturing settings? Can you think of an example?

A: All overhead variances, even those incurred outside the manufacturing function, are undoubtedly…

Q: Variances are computed by taking the difference between which of the following? Multiple Choice O…

A: Product costs are the costs that are directly related to the production of goods or services. Period…

Q: Outline 2 potential causes for each of the material and labour variances

A: The distinction between the standard cost of direct materials indicated for fabricating and the real…

Q: please solve for these questions:  b-1. What is the labor efficiency variance? b-2. What is the…

A: Variance analysis is a method of measuring the difference between the standard numbers expected by…

Q: Define variance

A: Variance in statistics is the calculation of the distribution in an information source between the…

Q: Give an example of a Direct Material Price Variance with figures and calculate the variance

A: Direct Material Price Variance is the difference between actual material cost and standard cost of…

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A: Variance analysis is very important technique of comparing budgeted costs with actual costs in order…

Q: iv)  Labour rate variance v)  Labour efficiency variance vi)  Overhead variances (both) d.…

A: Budget variance is the difference between the actual and budgeted costs occurred in a manufacturing…

Q: How do you find the standard quantity for efficiency variance?

A: Management should pay particular attention to those that are uncommon or noteworthy. Firms may…

Q: Describe the procedure to compute the variance of return for a project?

A: Variance is ascertained as follows: The mean worth is dictated by including all the information…

Q: Variance is underapplied when: Select one: a. None of the options b. If actual overhead > applied…

A: The variance is the difference between standard and the actual data.

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance. 

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.