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Choc Co is a company which manufactures and sells three types of biscuits in packets. One of them is called ‘Ooze’ and contains three types of sweeteners: honey, sugar and syrup. The standard materials usage and cost for one unit of ‘Ooze’ (one packet) is as follows: In the three months ended 30 November 2011, Choc Co produced 101,000 units of ‘Ooze’ using 2,200 kg of honey, 1,400 kg of sugar and 1,050 kg of syrup. Note: there are 1,000 grams in a kilogram (kg). Choc Co has used activity-based costing to allocate its overheads for a number of years. One of its main overheads is machine set-up costs. In the three months ended 30 November 2011, the following information was available in relation to set-up costs: Required: (a) Calculate the following variances for materials in Ooze: (i) Total materials usage variance; (4 marks) (ii) Total materials mix variance; (4 marks) (iii) Total materials quantity (yield) variance. (4 marks) (b) Calculate the following activity-based variances in relation to the set-up cost of the machines: (i) The expenditure variance; (3 marks) (ii) The efficiency variance. (3 marks) (c) Briefly outline the steps involved in allocating overheads using activity based costing. (2 marks)