Jammer Company produces jelly using strawberries and raspberries. Jammer developed the following standard mix for producing 120 gallons of jelly:
Direct Material
Mix
Mix Proportion
SP
Standard Cost
Strawberries
128 lbs.
0.80
$0.50
$64
Raspberries
32 lbs.
0.20
$1.00
$32
Total
160 lbs.
$96
Jammer put a batch of 1,600 pounds of direct materials into process. Of the total, 1,120 pounds were strawberries, and the remaining 480 pounds were raspberries. The actual yield was 1,300 pounds.
1. Calculate the standard mix (SM) in pounds for strawberries and for raspberries for this batch.
2. Calculate the mix variance.
Is the variance favorable or unfavorable?
3. Calculate the yield ratio based on the standard amounts given.
4. Calculate the standard cost per pound of the yield.
5. Calculate the standard yield for actual input of 1,600 pounds.
6. Calculate the yield variance.
Is the variance favorable or unfavorable?
