Mix and Yield variances

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.

1. 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)

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?

• says

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

2. 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

• says

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.

• says

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

3. says

Dear John,

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

• says

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

• 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?

• 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.

4. 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)

• 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)

• says

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