Material Mix and Material Yield — OpenTuition Forums

Nnaheeda6y ago

Hi John So I tried doing this question but I got stuck half way I would really appreciate your help. My problem is in looking for the standard mix... the question is below And This is what I've done Actual mix Lettuce=62000×0.0002=12.4 Pepper=81000×0.0004=32.4 Beetroot=102000×0.0008=81.6 Total=126.4 Mr. Green makes salads. The standard plate of salad has 30 g of lettuce (L), 50 g of peppers (P) and 80 g of beetroot (B). The standard prices of the three ingredients are $0.2/kg, 0.4/kg and 0.8/kg respectively. The actual prices were $0.22/kg, $0.38/kg and $0.82/kg. Mr. Green has been experimenting and so in July he changed the mix of vegetables on the plate thus: 1,500 plates contained 62,000 grams of lettuce, 81,000 grams of peppers and 102,000 grams of beetroot. What is the cost difference between the actual mix and the standard mix to the nearest cent? I don't know how to calculate the standard mix can you please explain how it can be done

John MoffatTutor6y ago#1

You workings for actual mix at standard cost are correct. The standard mix is that for every 160g, 30g should be lettuce, 50g should be peppers, and 80g should be beetroot. The total actually used was 62,000 + 81,000 + 102,000 = 245,000 grams. Had they used the standard mix, then lettuce would be 30/160 x 245,000 = 45,937.5 g; peppers would be 50/160 x 245,000 = 76,562.5 g; and beetroot would be 80/160 x 245,000 = 122,500 g. You then cost out at standard costs per gm. Do watch my free lectures on this. The lectures are a complete free course for Paper PM and cover everything needed to be able to pass the exam well.

Nnaheeda6y ago#2

Hi Sir, Can you please help me understand how to find the yield variance from the same question above?

John MoffatTutor6y ago#3

Have you not watched my free lectures as I suggested in my previous reply? The total quantity used should have been 1,500 plates x (30 + 50 + 80) = 240,000 gms. The actual total quantity used was 245,000 gms (as explained in my previous reply). Cost out both total quantities at standard mix and standard cost, and the difference is the yield variance. Please watch my free lectures.