ACCA · Question 12 · Advanced Variances
Section A
NutriBake produces energy bars using a standard mix of oats and honey. The standard mix is 60% oats and 40% honey.
Standard prices are: Oats $2/kg, Honey $5/kg.
In the last period, NutriBake used a total of 1,000 kg of materials, consisting of 500 kg of oats and 500 kg of honey.
What is the total material mix variance?
Answer options:
$300 Adverse
$300 Favorable
$500 Adverse
$1,000 Adverse
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