Jam Life Inc. manufactures jam products. It makes a mixed fruit and berry jam by blending strawberries, peaches, and apricots.
Budgeted costs to produce 100,000 kilograms of jam in September were:

Actual costs to produce 100,000 kilograms of jam in September were:

Required:
1. Calculate the total direct materials rate and efficiency variances.
2. Calculate the total direct materials mix and yield variances.
3. Jam Life's largest competitor sells a 500 gram jar of mixed fruit and berry jam for $4.50 . If Jam Life's management wants to meet this price and cover monthly fixed costs of $180,000 then what will be the company's margin of safety? (Assume that Jam Life will continue to use the budgeted mix of ingredients.)

Question

Jam Life Inc. manufactures jam products. It makes a mixed fruit and berry jam by blending strawberries, peaches, and apricots.
Budgeted costs to produce 100,000 kilograms of jam in September were:
  
Actual costs to produce 100,000 kilograms of jam in September were:
  
Required:
1. Calculate the total direct materials rate and efficiency variances.
2. Calculate the total direct materials mix and yield variances.
3. Jam Life's largest competitor sells a 500 gram jar of mixed fruit and berry jam for $4.50 . If Jam Life's management wants to meet this price and cover monthly fixed costs of $180,000 then what will be the company's margin of safety? (Assume that Jam Life will continue to use the budgeted mix of ingredients.)

Quizplus · Accepted Answer

The Answer of Jam Life Inc. manufactures jam products. It makes a mixed fruit and berry jam by blending strawberries, peaches, and apricots.
Budgeted costs to produce 100,000 kilograms of jam in September were:
  
Actual costs to produce 100,000 kilograms of jam in September were:
  
Required:
1. Calculate the total direct materials rate and efficiency variances.
2. Calculate the total direct materials mix and yield variances.
3. Jam Life's largest competitor sells a 500 gram jar of mixed fruit and berry jam for $4.50 . If Jam Life's management wants to meet this price and cover monthly fixed costs of $180,000 then what will be the company's margin of safety? (Assume that Jam Life will continue to use the budgeted mix of ingredients.)