Glassworks makes products for the sandblasting industry. One of the products they make is bags of high-grade sandblasting media that is made from a combination of quartz-sand and recycled ground-glass (cullet). Standard costs and quantities to produce one bag of sandblasting media are as follows: Quantity Cost Quartz-sand 20 kg $4.00 Cullet 5 kg $3.00 80,000 bags of sandblasting media were produced. Actual purchases and inventories were: Beginning Ending Purchases Purchases Inventory Inventory (in kg) ( in $) Quartz-sand 0 kg 0 kg 1,610,000 kg $322,161 Cullet 0 kg 120,000 kg 550,000 kg $286,000 Required: Calculate the following variances: a)Total direct material efficiency variance. b)Total direct material mix variance. c)Total direct material yield variance.
Glassworks makes products for the sandblasting industry. One of the products they make is bags of high-grade sandblasting media that is made from a combination of quartz-sand and recycled ground-glass (cullet).
Quantity Cost
Quartz-sand 20 kg $4.00
Cullet 5 kg $3.00
80,000 bags of sandblasting media were produced. Actual purchases and inventories were:
Beginning Ending Purchases Purchases
Inventory Inventory (in kg) ( in $)
Quartz-sand 0 kg 0 kg 1,610,000 kg $322,161
Cullet 0 kg 120,000 kg 550,000 kg $286,000
Required:
Calculate the following variances:
a)Total direct material efficiency variance.
b)Total direct material mix variance.
c)Total direct material yield variance.
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