Reference no: EM132664611

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                Cost per kg
Whole wheat             27,500                         $1.25
Quinoa                       16,000                        $2.40
Spelt                          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

Problem a) What is the total mix variance for May and for June?

Problem b) What is the total yield variance for May and for June?