Essay
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.)
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