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- This topic has 3 replies, 2 voices, and was last updated 7 years ago by
John Moffat.
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- October 31, 2018 at 10:07 am #480329
From the 3rd example where the first requirement is to calculate the total material cost variance , the actual total costs for the both material x & y was 38,000 (27 k+11 k) meaning the total kg used to produced the 5000 units were the 9900 kg +5300 kg = 15200 kg.
The 40,000 dollars was the std cost needed to produce the actual 5000 units . am i right sir?
Just wanted to know if my interpretation is improving .
November 1, 2018 at 7:17 am #483199I don’t know what example you are referring to.
November 1, 2018 at 12:36 pm #483501The very first example of mix and yield variance where actual production during the period was 5000 units with standard costs is 8 dollars
November 1, 2018 at 3:32 pm #483521You did not say that you were referring to the example in our lecture notes!!
Yes – the $40,000 is the standard cost of 5,000 units (5,000 x $8 per unit).
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