Problem
Jenny's Condiments. Jenny's Condiments makes a specialty mustard for street vendors that is composed of wet ingredients and dry ingredients. Two parts of wet ingredients at a standard cost of $12, and three parts of dry ingredients at a standard cost of $9, are required for every batch. In the first week of July, Jenny produced two hundred thirty batches of mustard using 450 units of wet ingredients and 750 units of dry ingredients.
Task
i. For the wet ingredients what are the material mix and yield variances respectively?
ii. For the dry ingredients what are the material mix and yield variances respectively?
iii. What is the total material mix and yield variance? What is the interpretation of these variances?
iv. What is the total material efficiency variance?