Summer, Inc. has the following information available for the current year’s prod

Question

Summer, Inc. has the following information available for the current year’s production of its Cran-Almond trail mix bags:

Standard:

Dried Cranberries:                   3.0 pounds per unit @ $8.00 per pound

Raw Almonds:                         4.5 pounds per unit @ $5.00 per pound

    Total weight per bag                        7.5 pounds

The actual consumption in production occurred at the following rates during the year:

Dried Cranberries:                   3.6 pounds per unit @ $9.00 per pound

Raw Almonds:                         4.4 pounds per unit @ $4.50 per pound

Summer produced a total of 45,750 bags for the year.

Required:

[8 points] Use the above information to calculate the mix and yield variances. Use Form 6-A for your answers.

Explanation / Answer

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Usage: 45750 Bags Dried Cranbarries Raw Almonds Total Should Use 3 and 4.5 137250 205875 343125 Did Use 3.6 and 4.4 164700 201300 366000 Variance (Pounds) 27450 4575 22875 U F U Standard Cost 8 5 Variance (Dollars) 219600 22875 196725 U F U Mix: Dried Cranbarries Raw Almonds Total Standard Mix 3/7.5and 4.5/7.5 146400 219600 366000 Actual Mix 164700 201300 366000 Mix Variance (Pounds) 18300 18300 0 U F Standard Cost 8 5 Mix Variance (Dollars 146400 91500 54900 U F U Yield: 366000 of input should give output of 366000/7.5 48800 366000 of input did give output of 45750 3050 U Standard Cost per unit 46.5 (3*8)+(4.5*5) 141825 U

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