50.1K

Verified Solution

Link Copied!

Mother's Snacks produces snack mixes for the gourmet and natural foods market. In the current period, Mother's Snacks made 140 batches of (Click the icon to view the budjeted quantibes and budgeted prices of Tempting Trai Mix with the following actual quantity, cost, and mix of inputs: direct materials.) (Click the icon to view the actual quantify, cost, and mix of inpuss.) Requirement 1. What is the budgeted cost of direct materials for the 140 batches? Begin by calculating the total budgeted number of cups and the budgeted cost of direct materials for one batch. Data table 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: Data table Small changes to the standard mix of direct material 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. Requirements 1. What is the budgeted cost of direct materials for the 140 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 140 batches produced this period? Are the variances large enough to investigate

Answer & Explanation Solved by verified expert

See Answer