Tag Archives: direct material price variance

How does the drop in the price of eggs impact Kellogg’s® variances for its Eggo® Homestyle waffles?

In 2015, when the avian flu hit egg producers hard, there was a shortage of eggs. Egg prices increased dramatically. Over the years since 2015 however, egg production has ramped back up as egg producers have restocked their flocks of egg-laying chickens.  There is now a glut of eggs, putting causing the price of eggs […]

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If the AMD Ryzen 16-Core CPU saves $1,000 per computer manufactured, how would computer manufacturers’ variances be impacted?

AMD is rumored to be releasing a new 16-core, 32 thread CPU, that would be significantly more powerful than its competitors – and it would be about $1,000 less expensive than the closest Intel CPU. This AMD chip is named “AMD Ryzen” and it has six more cores than Intel’s current primary desktop CPU – […]

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Is a favorable raisin quantity variance good for Kellogg’s Raisin Bran?

Kellogg’s Raisin Bran is famous for its advertising slogan of “Two scoops of raisins in every box.” The current box design for Raisin Bran shows two scoops of raisins on the front of the box. A few months ago, a post went viral on Reddit that showed a picture of the raisins actually found in […]

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When the chocolate used in Cadbury Creme Eggs was changed to a less expensive chocolate, what variances would have been impacted?

A Cadbury Creme Egg is an egg-shaped chocolate candy that weighs about 35 grams, or a little more than 1.2 ounces. It is filled with a white fondant and a smaller amount of yellow fondant, meant to mimic an actual egg.  (Fondant is a type of sugar syrup.) In the U.S., Cadbury Creme Eggs are […]

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How does the rising cost of hazelnuts impact NUTELLA®?

Hazelnuts are used in high-end chocolate items such as pralines and truffles.  In addition, hazelnuts are used in Nutella spread.  Turkey supplies more than 70% of the world’s hazelnuts. In 2014, there was a widespread frost in Turkey that damaged hazelnut flowers and cut production of hazelnuts by 28%.  The price of hazelnuts more than […]

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