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The Organic Bread Company (OBC) makes a range of breads for sale direct to the public. The production process begins with workers weighing out ingredients on electronic scales and then placing them in a machine for mixing. A worker then manually removes the dough from the machine and shapes it into loaves by hand, after which the bread is then placed into the
oven for baking.All baked loaves are then inspected by OBC’s quality inspector before they are packaged up and made ready for sale. Any loaves which fail the inspection are donated to a local food bank.
Q) Which of the following statements below is/are true?
(1) An adverse material mix variance may arise because the dough may not be
removed completely out of the machine, leaving some dough behind.(2) An adverse material yield variance may arise because handmade loaves may be slightly too large, meaning that fewer loaves can be baked.
A (1) only
B (2) only
C Both (1) and (2)
D Neither (1) nor (2)Sir i know as to why Statement 1 is false, can you tell me why Statement 2 is true, no explanation has been provided for that in the answer.
An adverse yield variance is when they are producing less than expected. Statement 2 is saying that because they are making the loaves a little to big then they are producing less loaves than expected,
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