Question 15 (Information repeated for your convenience) Case One: 1.300 kg of toffee is usually made from 1.400 kg of the following materials: 504 kg of Sugar, costing £0.80 per kg 406 kg of Butter, costing £7 per kg 294 kg of Almonds, costing £5 per kg 196 kg of Peanuts, costing £4 per kg In February 2022, 52.000 kg of toffee were produced, using: 18,500 kg of Sugar 16,800 kg of Butter 6,000 kg of Almonds 12,600 kg of Peanuts Note: Assume no other materials were used in production. 85. Briefly comment on three possible reasons for the variances based on the results.

Question 15 (Information repeated for your convenience) Case One: 1.300 kg of toffee is usually made from 1.400 kg of the following materials: 504 kg of Sugar, costing £0.80 per kg 406 kg of Butter, costing £7 per kg 294 kg of Almonds, costing £5 per kg 196 kg of Peanuts, costing £4 per kg In February 2022, 52.000 kg of toffee were produced, using: 18,500 kg of Sugar 16,800 kg of Butter 6,000 kg of Almonds 12,600 kg of Peanuts Note: Assume no other materials were used in production. 85. Briefly comment on three possible reasons for the variances based on the results.

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter15: Managing Short-term Assets

Section: Chapter Questions

Problem 17PROB

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