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3. Would the direct materials price variance for raisins likely be related to the direct materials quantity variance?


3. Would the direct materials price variance for raisins likely be related to the direct materials quantity variance?

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Would the direct materials price variance for raisins likely be related to the direct materials quantity variance? YES: The... View the full answer

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  • 2. What could cause an unfavorable raisin quantity variance for Kellogg's Raisin Bran? Would the unfavorable quantity variance be good for Kellogg's Raisin Bran? Why or why not?
    • emilyann6
    • Aug 07, 2018 at 3:34pm
  • The unfavorable raisin quantity variance for Kellogg's Raisin Bran, is caused by higher prices for the raisin. When the actual prices are higher of raisin is higher than the budgets prices, then this will lead to unfavorable material variance. This is because the quantity of raisin purchased will be less than the budgeted quantity. Unfavorable quantity variance of raisin is not good for Kellogg's Raisin Bran. This is because unfavorable material variance means that the cost of purchasing these materials is high. Therefore, the firm will use a lot of money in purchasing the quantity of the Kellogg's Raisin Bran.
    • LizMaster
    • Aug 07, 2018 at 3:51pm
  • Is a favorable raisin quantity variance good for Kellogg's Raisin Bran?
    • emilyann6
    • Aug 07, 2018 at 3:56pm
  • YE:S: This is because a favorable raisin quantity variance means that the actual quantities purchased is higher than the budgeted quantities. Therefore, this is a reflection that the cost of the raisin is lower than that which was budgeted. This allows the firm to purchase more of the raisin in the company.
    • LizMaster
    • Aug 07, 2018 at 4:11pm

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