Question

Fraser Industries Inc. manufactures farm products. It makes a popular lawn fertilizer by mixing nitrogen, potassium and phosphorus. Calculate the total direct materials mix and yield variances when the actual production and budgeted production was 100,000 bags of fertilizer. (4)

Budgeted costs in the month were:

Ingredient	Kilograms	Cost per Kg.
Nitrogen	220,000 kg.	$1.25
Potassium	100,000 kg.	$1.80
Phosphorus	80,000 kg.	$2.25

Actual costs in the month were:

Ingredient	Kilograms	Cost per Kg.
Nitrogen	210,000 kg.	$1.15
Potassium	105,000 kg.	$1.80
Phosphorus	105,000 kg.	$2.10

Answer 1