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sir, i do not understand this question from Bpp revision kit MCQ 41.8.
Q- A mix of three materials into a process produce one litre of a finished productsm with some loss of input in the process.(I do not know how this loss of input should be dealt)
Standard material costs are as followes per liter of output
material
x .3 liters at $2 per liter $.60
Y .6 liters at $3 per liter $1.80
Z .3 liters at $ ! per liter $.30During control period,5000 units of output were producded. these used 1400 liters of material X:3100 liters of Material y: and 1250 liters of Material Z.
What is the material yield variance.?
A-412.50A
B-150F
C-469
D-562.50sir i did the way you taught in the your lectuer on material mix and yeild variance..a detaled explanation would be great..
You must ask in the Ask the Tutor Forum if you wish for me to answer (this forum is for students to help each other).
The yield variance deals with loss of input (and the example I work through in the lecture has a loss of input!).
In this question, for every 1 litre of output, they input 1.2 litres of material.
Therefore for actual output of 5,000 litres, they should have input 5,000 x 1.2 = 6,000 litres.
If you compare the standard cost of 6,000 litres in standard mix, with the standard cost of 5,750 litres (the actual total input) in standard mix, then you will come to the same answer as BPP (D).
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