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:

-What is the direct material mix variance for Strawberry Jam.? (3 marks)

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:
 
-What is the direct material mix variance for Strawberry Jam.? (3 marks)

Quizplus · Accepted Answer

The direct material mix variance is calculated as the difference between the actual quantity used at standard mix and the actual quantity used at actual mix, multiplied by the standard price. The correct calculation results in a $26,250 unfavorable variance.