Sarsi Bottlers Inc, a leading softdrinks company is producing their bottle requirements. For each case of 24 eight-ounce bottles, the company prescribed the following standard product mix: Material A @ 2.4 lb, P50/lbs; Material B @ 6 lb, P22/lbs and Material C @ 1.6 lbs, P15/lb. During the month of August, 25,000 cases were produced from an input of: Material Pounds Cost/lb A 63,700 49 B 125,200 20.50 C 48,100 16 a. COMPUTE FOR THE MATERIALS MIX VARIANCE b. COMPUTE FOR THE MATERIALS YIELD VARIANCE

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Sarsi Bottlers Inc, a leading softdrinks company is producing their bottle requirements. For each case of 24 eight-ounce bottles, the company prescribed the following standard product mix: Material A @ 2.4 lb, P50/lbs; Material B @ 6 lb, P22/lbs and Material C @ 1.6 lbs, P15/lb.

During the month of August, 25,000 cases were produced from an input of:

Material        Pounds       Cost/lb

    A               63,700          49

    B              125,200         20.50

    C               48,100          16

a. COMPUTE FOR THE MATERIALS MIX VARIANCE

b. COMPUTE FOR THE MATERIALS YIELD VARIANCE

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