Quantity per Batch Price per Cup Peanuts 60 cups $1 Dried cranberries $2 30 cups 10 cups Chocolate pieces 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 Actual Cost Actual Mix Peanuts 6,720 cups $ 5,712 64% Dried cranberries 25% 2,625 cups 1,155 cups 5,775 Chocolate pieces 3,350 11% Total actual 10,500 cups $14,837 100% 1. What is the budgeted cost of direct materials for the 100 batches? 2. Calculate the total direct materials efficiency variance. 3. Calculate the total direct materials mix and yield variances. 4. How do the variances calculated in requirement 3 relate to those calculated in requirement 2? What do the variances calculated in requirement 3 tell you about the 100 batches produced this period? Are the variances large enough to investigate? Required
Quantity per Batch Price per Cup Peanuts 60 cups $1 Dried cranberries $2 30 cups 10 cups Chocolate pieces 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 Actual Cost Actual Mix Peanuts 6,720 cups $ 5,712 64% Dried cranberries 25% 2,625 cups 1,155 cups 5,775 Chocolate pieces 3,350 11% Total actual 10,500 cups $14,837 100% 1. What is the budgeted cost of direct materials for the 100 batches? 2. Calculate the total direct materials efficiency variance. 3. Calculate the total direct materials mix and yield variances. 4. How do the variances calculated in requirement 3 relate to those calculated in requirement 2? What do the variances calculated in requirement 3 tell you about the 100 batches produced this period? Are the variances large enough to investigate? Required
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Direct materials efficiency, mix, and yield variances. 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:
Transcribed Image Text:Quantity per Batch
Price per Cup
Peanuts
60 cups
$1
Dried cranberries
$2
30 cups
10 cups
Chocolate pieces
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
Actual Cost
Actual Mix
Peanuts
6,720 cups
$ 5,712
64%
Dried cranberries
25%
2,625 cups
1,155 cups
5,775
Chocolate pieces
3,350
11%
Total actual
10,500 cups
$14,837
100%
1. What is the budgeted cost of direct materials for the 100 batches?
2. Calculate the total direct materials efficiency variance.
3. Calculate the total direct materials mix and yield variances.
4. How do the variances calculated in requirement 3 relate to those calculated in requirement 2? What do
the variances calculated in requirement 3 tell you about the 100 batches produced this period? Are the
variances large enough to investigate?
Required
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