Gibbon's Natural Foods produces a trail mix (snack food) which contains raisins as one of its ingredients. The raisin (materials) standards for each batch of trail mix produced are 15 kilograms of raisins at a standard cost of $2.00 per kilogram. During October, Gibbon's Natural Foods purchased and used 51,000 kilograms of raisins at a total of $133,000 to make a total of 3,000 batches of trail mix. What is the materials quantity (efficiency) variance for raisins in October?

Question

Quizplus · Accepted Answer

A) Mat'l efficiency var = (Actual quantity - Std qty allowed) × Std price
$12,000 U = (51,000 - (3,000 × 15)) × $2

Gibbon's Natural Foods Produces a Trail Mix (Snack Food) Which