Question

Aday's Taqueria bases their enchilada recipe, with a standard of 25 servings, on the following information: Ingredient Standard Quantity Standard Price 2.25 lbs $0.95 per lb 3.40 lbs $1.62 per lb 4.00 lbs $2.40 per lb 3.00 lbs $0.70 per lb OOO During the last period, at total of 1,200 servings were actually produced. Additionally, the following actual data was recorded: Ingredient Actual Quantity Used Actual Costs 75.50 lbs $99.75 140.00 lbs $300.00 25.00 lbs $70.00 125.00 lbs $95.00 Using the information above, calculate the following: Quantity Variance for Ingredient A Select one: O a. (30.88) b. (37.58) c. 31.20 O d. (13.30)

Answer 1

Standard Quantity of A per serving = 2.25/25 = 0.09 per serving

Quantity Variance = (SQ-AQ) * SP

= (0.09*1200 - 75.50) * 0.95

= (108 - 75.50) * 0.95

= (30.88) Favourable

Option A is the answer