Best Jam Inc. manufactures jam products. It makes a mixed fruit and berry jam by blending strawberries 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 $100,000 100,000 kg. $1.80 $180,000 220,000 kg. $2.25 $450,000 Peach Apricot Actual costs to produce 100,000 kilograms of jam in September were: Kilograms Cost per Kg. Total Cost 105,000 kg. $1.15 105,000 kg. $1,80 210,000 kg. $2.10 Ingredient Strawberry Peach Apricot $120,750 $189,000 $441,000 What is the direct material yield variance for Strawberry Jam?
Best Jam Inc. manufactures jam products. It makes a mixed fruit and berry jam by blending strawberries 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 $100,000 100,000 kg. $1.80 $180,000 220,000 kg. $2.25 $450,000 Peach Apricot Actual costs to produce 100,000 kilograms of jam in September were: Kilograms Cost per Kg. Total Cost 105,000 kg. $1.15 105,000 kg. $1,80 210,000 kg. $2.10 Ingredient Strawberry Peach Apricot $120,750 $189,000 $441,000 What is the direct material yield variance for Strawberry Jam?
Chapter1: Financial Statements And Business Decisions
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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.
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Transcribed Image Text:Best Jam 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
100,000 kg.
$1.80
$180,000
220,000 kg.
$2.25
$450,000
Peach
Apricot
Actual costs to produce 100,000 kilograms of jam in September were:
Kilograms Cost per Kg. Total Cost
105,000 kg. $1.15
$120,750
105,000 kg.
$1,80
$189,000
210,000 kg.
$2.10
$441,000
Ingredient
Strawberry
Peach
Apricot
What is the direct material yield variance for Strawberry Jam?
a. $5,000 F
b.
$9,000 U
c. $38,750 F
d. $9,000 F
e.
$5,000 U
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