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Question - Company A manufactures a vegetarian chew biscuit for puppies. The dog biscuit uses a multigrain formula that sometimes varies depending on supplier cost and availability. The company produces a standard lot of 50,000 kilograms of biscuits. The standard for each batch is as follows:
Cost per kg
kgs used
Whole wheat
$1.20
30,000
Quinoa
$2.50
15,000
Spelt
$3.50
5,000
In May, Company A produced 50,000 kilograms of biscuits. The actual use of grain for the month was as follows:
Kg used
27,500
$1.25
16,000
$2.40
6,500
$3.25
In June, Company A produced a 51,500 kg batch of biscuits. The actual use of grain for the month was as follows: (Actual costs in June were back to standard)
Whole wheat 31,000
Quinoa 16,000
Spelt 5,000
Required -
a) What is the total mix variance for May and for June?
b) What is the total yield variance for May and for June?
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