if there is idle time involved in production, it won't affect the team composition variance. But it will affect the team productivity variance. So how do we find out the standard labour hours for actual production in case of idle time?
I believe to answer this ,the logic is same like for material yield variances involving losses.
ACCA is very notorious for testing concepts in new scenarios. So I believe there is fair chance for this being asked.
Ask the Tutor ACCA PM
Labour mix variances
3y ago#1You are correct that the approach is exactly the same as for material yield variances when there is a standard loss.
Thank you
Hey can you clarify me on why standard loss doesn't affect MATERIAL mix VARIANCES? As far I have understood' the material mix variances assess the financial impact of actual mix differing from standard mix for the actual production.
3y ago#4Any losses are dealt with in the yield variance.
The mix variances is purely looking at the effect of changes in the way that the actual total input is mixed between the various materials.
Have you watched my lectures on mix and yield variances?
Sign into reply to this topic.