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. )