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Choc co.
Hello sir
In the a part) std usage for actual output how do we get honey 2020,sugar 1515,syrup 1010
and also std cost per kg 20,30 and 25.
||) Mix variance
Actual quantity std mix
How do we get honey 2066.67
Sugar 1550
Syrup 1033.33Thanks
1. They actually produced 101,000 units. The standard usage is 20 grams of honey per unit. So the standard usage for the actual output is 101,000 x 20 = 2,020,000 grams (which is 2,020 kg). Same workings for sugar and syrup. (The question does actually tell you that there are 1,000 grams in a kilogram!)
2. The standard costs are given in the question! Honey is $0.02 per gram, which is $20 per kg..
3. The total quantity used is 2,200 + 1,400 + 1,050 = 4,650 Kg.
From the cost card, honey should be 20 grams out of every 45 grams.
Therefore at standard mix, honey should be 20/45 x 4,650 = 2,066.67 Kg.
Same workings for sugar and syrup.Have you watched my free lectures on mix and yield variances? The lectures are a complete free course for Paper PM and cover everything needed to be able to pass the exam well.
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