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To produce 19 litres of product x a standard input mix of 8 litres of chemical A and 12 litres of chemical B is required. Chemical A has a standard cost of 20 per litre and chemical B has a standard cost of 25 per litre. During september the actual results showed that 1850 litres of product X were produced using a total input of 900 litres of chemical A and 1100 litres of chemical B. The actual costs of chemicals A and B were at the standard cost of 20 and 25 per litre respectively.
When calculating the yield variance, how to calculate the standard total for standard mixPer the standard cost card the should use 20 litres in total in order to produce 19 litres of the product.
For the actual production of 1850 litres they should therefore have used a total of 20/19 x 1850 = 1947.36 litres, of which 8/20 should be chemical A and 12/20 should be chemical B.
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