Reference no: EM132514792

Grains Galore Cereal Co. produces a cereal called Toasty Fruits, which is a mix of cranberries, raisins and rice flakes. It has set the following standards to produce 50 kilograms of cereal:

Ingredient                Kilograms                  Cost per kilogram                  Total Cost

Rice flakes                       30                        $ 2.00                     $ 60.00

Raisins                          18                         $ 2.50                          45.00

Cranberries                  12                            $30.00                     360.00 60

                                                                                                $ 465.00

At the end of the month, the operations manager reported the following details relating to the production of 2,600 kilograms of Toasty Fruits cereal:

Ingredient               Kilograms              Cost per kilogram                   Total cost

Rice flakes                  1,820                  $ 1.85                            $ 3,367.00

Raisins                      910                      $ 2.60                             2,366.00

Cranberries                770                     $33.50                            25,795.00

                                3,500                                                      $ 31,528.00

• All prices remained the same for the period and Grains Galore operates on a just-in-time inventory basis with negligible beginning and ending inventories.

Question 1: What were the mix and yield variances for the month?

a) Mix variance, $1,684.80 U; Yield variance, $3,150.20 U

b) Mix variance, $1,890.00 U; Yield variance, $2,945.00 U

c) Mix variance, $1,890.00 U; Yield variance, $3,150.20 U

d) Mix variance, $2,110.50 U; Yield variance, $3,193.90 U