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HI, I have calculated material yield to be 1248 Adverse. It seems to me I am doing something wrong with yield variances, Please anyone answer.
For Kaplan problem 115, my answer is 2.812 Adverse.
It seems to me I am doing something wrong with yield variances. But for other problem I get right answers.
Could you please explain to meBoth answers have typing errors (!!!) – BPP’s calls it the mix variance instead of the yield variance. Kaplan’s answer seems to have set it out most strangely!
BPP question:
It is 1248 favourable, because the actual yield is higher than the standard yield. They have produced more than they would have expected to produce.
Kaplan question:
One plate should have used 30 + 50 + 80 = 160 gms..
Each plate should have cost (30 x 0.2) + (50 x 0.4) + (80 x 0.8) = $90/1,000They input a total of 245,000 grams and there should have produced 245,000/160 = 1531.25 plates. They actually produced 1500 plates and so the yield variance is 31.25 x 90/1,000 = $2.8125 (adverse)
(Alternatively, you could have said that to produce 1500 plates, they should have used 1500 x 160 = 240,000 grams. They actually used 245,000 grams which is 5,000 too many., and costed out these 5,000 at the standard cost per gram of 90/160,000 = $0.0005625. 5000 x 0.0005625 = $2.8125 )
Thanks a lot, that is exactly what I have done. And thanks a lot for everything.
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