Mathematics · Cost Accounting
In Month 4, Romeo Co. produced and sold 110 basic tomato pizzas. The actual raw material details used are as follows: Dough: 21.3 kg bought and used at $6.60 per kg Tomato sauce: 7.5 kg bought and used at $2.45 per kg Cheese: 14.2 kg bought and used at $20.00 per kg Herbs: 2.0 kg bought and used at $8.50 per kg Total ingredients used: 45 kg. If the standard ingredient mix per pizza requires 0.20 kg of Dough (at $6.00/kg), 0.08 kg of Tomato sauce (at $2.50/kg), 0.15 kg of Cheese (at $20.00/kg), and 0.02 kg of Herbs (at $8.00/kg), what is the total materials yield variance for Month 4?
- 1$12.21 Favourable✓
- 2$11.63 Favourable
- 3$21.95 Adverse
- 4$9.75 Adverse
Correct answer
$12.21 Favourable
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