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Material Mix and Yield variance

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Material Mix and Yield variance

  • This topic has 3 replies, 2 voices, and was last updated 7 years ago by John Moffat.
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  • October 31, 2018 at 10:07 am #480329
    iyamu
    Participant
    • Topics: 286
    • Replies: 171
    • ☆☆☆

    From the 3rd example where the first requirement is to calculate the total material cost variance , the actual total costs for the both material x & y was 38,000 (27 k+11 k) meaning the total kg used to produced the 5000 units were the 9900 kg +5300 kg = 15200 kg.

    The 40,000 dollars was the std cost needed to produce the actual 5000 units . am i right sir?

    Just wanted to know if my interpretation is improving .

    November 1, 2018 at 7:17 am #483199
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54814
    • ☆☆☆☆☆

    I don’t know what example you are referring to.

    November 1, 2018 at 12:36 pm #483501
    iyamu
    Participant
    • Topics: 286
    • Replies: 171
    • ☆☆☆

    The very first example of mix and yield variance where actual production during the period was 5000 units with standard costs is 8 dollars

    November 1, 2018 at 3:32 pm #483521
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54814
    • ☆☆☆☆☆

    You did not say that you were referring to the example in our lecture notes!!

    Yes – the $40,000 is the standard cost of 5,000 units (5,000 x $8 per unit).

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