Question

Kality food complex has three types of direct material input and standards to produce 9 pounds of out put

(sausage):5 pounds of meat A at actual cost of $0.70/pound=$3.50 3 pounds of meat B at actual cost of $1.00/pound=$3.00 2 pounds of meat C at actual cost of $0.80/pound=$1.60 Suppose that no inventories of direct materials are kept. Purchases are made as needed. Actual results show that atotal of 100000 pounds of meat were used during the month as june as follows: 46000 pounds of meat A at actual cost of $ 0.80/ pound =$ 36800 40000 pounds of meat B at actual cost of $ 1.05/ pound =$ 42000 14000 pounds of meat C at actual cost of $ 0.85/ pound =$ 11900 Required:
calculate
a) the budget quantity of direct material inputs for each type of meat
b)the direct material variance
c) direct material price variance
d) direct material efficiency variances

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