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Mr. Green makes salads. The standard plate of salad has 30 g of lettuce (L), 50 g of peppers
(P) and 80 g of beetroot (B). The standard prices of the three ingredients are $0.2/kg,
0.4/kg and 0.8/kg respectively.
Mr. Green has been experimenting and so in July he changed the mix of vegetables on the
plate thus: 1,500 plates contained 62,000 grams of lettuce, 81,000 grams of peppers and
102,000 grams of beetroot.
What is the yield variance (do not round your answer)?
A $2.8125 Fav
B $2.8125 Adv
C $2,812.5 Fav
D $2,812.5 Adv..
Plz explain how to do this qn coz I got D the way I know but according to Kaplan it’s B while I don’t understand how they did it’s totally different ..I think that almost certainly the reason you got D instead of B is that you used the price per kg to cost out the amounts in gms. There are 1,000 gms in 1 kilogram which would mean your answer 1,000 times more than it should be.
No I got answer as D after I converted grams to kg that’s my final answer..
Plz explain the proper way of doing this question coz in Kaplan it’s totally different way n I didn’t understand itThe actual total quantity input is 245,000 gm.
Had it been mixed in the standard mix it would be 45,937.5 gms of lettuce (30/160 x 245,000); 76,562.5 gms of peppers; and, 122,500 gms of beetroot.
Costing out at standard cost gives a total cost of $137.8125For the actual production of 1,500 plates, then at standard mix they should have input:
lettuce 45,000 gms (1,500 x 30); peppers 75,000 gms; and beetroot 120,000 gms
Costing out at standard cost gives a total cost of $135.The variance is therefore 137.8125 – 135 = $2.8125 adverse, which is answer A.
(What might be your problem is that some countries us ‘.’ to signify thousands, but in the UK and in the exam it is a ‘,’ to separate the thousands. So the correct answer her is a little less than $3.)
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