Principles of Accounting Volume 2
19th Edition
ISBN: 9781947172609
Author: OpenStax
Publisher: OpenStax College
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Glassworks makes products for the sandblasting industry. One of the products they make is bags of high-grade sandblasting media that is made from a combination of quartz-sand and recycled ground-glass (cullet).
Quantity Cost
Quartz-sand 20 kg $4.00
Cullet 5 kg $3.00
80,000 bags of sandblasting media were produced. Actual purchases and inventories were:
Beginning Ending Purchases Purchases
Inventory Inventory (in kg) ( in $)
Quartz-sand 0 kg 0 kg 1,610,000 kg $322,161
Cullet 0 kg 120,000 kg 550,000 kg $286,000
Required:
Calculate the following variances:
a)Total direct material efficiency variance.
b)Total direct material mix variance.
c)Total direct material yield variance.
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