Question :
Northern Food Processors (NFP) gives Mango-Banana fruit juice. All materials are considered direct costs (everything else is considered overhead). Using standard costing, the budgeted costs to produce 50,000 cartons (50,000 liters) of juice are:
Budgeted Inputs: kgs $ per kg Tot Cost
Mangoes 36,000 1.9000 66,500
Bananas 24,000 1.2000 30,000
Total 60,000 96,500
1. In the past operating period, the firm essentially produced 52,000 liters of Mango-Banana juice. The actual materials used were:
Actual Inputs: kgs $ per kg Tot Cost
Mangoes 33,480 2.0000 66,960
Bananas 28,520 1.1500 32,798
Total 62,000 99,758
2. NFP's flexible budget allows how many kg's of inputs for the most current operating period:
a) 60,000 kg
b) 62,000 kg
c) 62,400 kg
d) 83,333 kg
3. The total price variance is:
a) $1,922 U
b) $3,258 U
c) $3,258 F
d) $2,604 F
4. The net mix variance is:
a) $1,922 U
b) $3,258 U
c) $3,258 F
d) $2,604 F