Business, 02.01.2022 14:00 queenskmk1628
A food complex has three types of direct material inputs and standards to produce 9
pounds of output (sausage) are:
5 pounds of meat A at the actual cost of $ 0.70/pound = $3.50
3 pounds of meat B at the actual cost of $ 1.00/pound = $3.00
2 pounds of meat C at the actual cost of $ 0.80/pound = $1.60
Total $8.10
Suppose that no inventories of direct materials are kept. Purchases are made as needed. Actual
results show that a total of 100,000 pounds of meat were used during the month of June as
follows:
46,000 pounds of meat A at actual cost of $ 0.80/pound = $36,800
40,000 pounds of meat B at actual cost of $ 1.05/pound = $42,000
14,000 pounds of meat C at actual cost of $ 0.85/pound = $11,900
100,000$90,700
Required: calculate
a) The budgeted quantity of direct material inputs for each type of meat
b) The direct material variances
c) Direct material price variances
d) Direct material efficiency variances
Answers: 1
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A food complex has three types of direct material inputs and standards to produce 9
pounds of outp...
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