#### Please note that this lecture, Mix and Yield Variances, relates to Chapter 14 of the Course Notes and not Chapter 12 as stated in the lecture. The example is on Page 82.

View all free ACCA F5 lectures >> | This lecture is based on ACCA F5 course notes, download or view on line here >> |

Anzor says

Hi, in revision Mock:

A company has budgeted on selling 7000 units of X $30 s.p and 3000 units of Y $40 s.p. Standard contribution 30% of selling price for both product.

They actually sale 8000X and 7000Y

What is the sales mix variance?

49500 (A)

49500 (F)

7500 (A)

7500 (F)

Right answer in your test is 7500 (F)

My calculation:

Budget 7000+3000=10000

8000+7000=15000

70%15000 30%15000

10500 X and 4500 Y

2500 (A)X and 2500 (F)Y

2500*(30-30%)=52500 (A)

2500*(40-30%)=70000 (F)

Total 17500 (F)

Am I wrong?

Thanks in advance

John Moffat says

Yes you are wrong!

You should cost out at standard contribution. Standard contribution for X is 30‰ of 30 (not 30 – 30%)!

Sakina says

a company has the following standards for a mix to produce 500kg of product C

A= 200KG @ $1 PER KG=$200

B=400KG@ $1.60 PER KG=$640

actual results with output of product C was 600kgs.

A=400KG @ $1 PER KG=$400

B=500KG@ $1.60 PER KG=$800

Calculate the yeild variance

SIR IM CONFUSED!! cld u plz tel me how to calculate ds

John Moffat says

In future, please ask this sort of question in the F5 Ask the ACCA Tutor Forum

The standard is to input a total of 600kg to get an output of 500kg.

So for an actual output of 600kg there should have been a total input of 600 x 600/500 = 720kg,

So cost out the actual total input (900kg) at standard mix and standard cost, with the standard total input (720kg) at standard mix and standard cost. The difference is the yield variance.

Sakina says

eeeeeee thankyu sir! sorry was a bit too excited so posted it here! haha

Slav says

Dear John,

I believe that someone asked this question but I did not see an answer. Which lecture covers sales mix variance?

John Moffat says

There is no lecture on sales mix variances (but there is an example in the course notes with an answer at the back).

Noreen says

Dear John,

I have reviewed the question on sales mix variance, however I have one question, how were the proportions assigned to A(2/4) , B(1/4) and C(1/4) in Example 4?

Please clarify. Thank you

John Moffat says

In the same mix as the budgeted sales.

Product A was budgeted at 200 units out of a total of 400 units, and similarly for the others.

wilson12345 says

question no 4 in mix variance, is it correct if i get the below answers?

sales margin variance= 2180(f)

price variance=770(a)

sales mix variance=575(f)

sales quantity variance=2375(f)

John Moffat says

If you mean example 4 in the chapter, then the correct answer is that shown in the lecture (and also typed at the back of the Course Notes)

AUWAL says

Hello sir, kindly assist me with labour idle time variance formula? thanks.

sampatheym says

very well explained

thank you so much………………..