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Dear Sir
Could you please explain to me how do get the answers:
Q48.8 why 100/120?
Q49.6 how do I get standard mix costs: P is 750kg, Q is 1500 kg…
Many thanks
Q48.8
If you look at the standard cost card, the total input of materials comes to 1.2 litres, but the expected output is 1 litre.
Therefore if they input 5,750 litres they would expect to produce 1/1.2 x 5,750 litres
Q49.6 (I think you mean 49.8 if you are using the current edition 🙂 )
In total they actually used 7,500 kg.
The question says that the standard mix is 10% for P, 20% for Q, etc.
So out of the 7,500 total, 10% (i.e. 750) should be P; 20% (i.e. 1,500) should be Q, and so on.
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