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Use of new machinery designed to reduce the amount of work in progress wasted due to spillage and leakage.
WHAT WILL BE THE VARAINCE ACCORDING TO THIS SCENARIO THIS QUESTION FROM THE STUDY HUB SAFE SOAP CO
Where new machinery is used to reduce the amount of work in progress wasted due to spillage and leakage, the variance that would be impacted is the material yield variance.
This would likely result in a favourable material yield variance.This is because the new machinery would reduce wastage, meaning that less input material is lost during the production process, leading to a higher actual output compared to the expected output.
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