Dear Sir, Please help me to explain about question 25 of mock exam 3.I do not understand the reason why the mix variance is the same meanwhile the chief used less cheese and more tomato sauce per pizza than standard? Thank you.
Ask the Tutor ACCA PM
Material mix variance
6y ago#1I can understand your confusion, but you have misunderstood what is typed in the answer.
What it is saying is that the mix variance and the usage variance will equal each other (as stated in the third sentence.
The usage variance equals the mix variance plus the yield variance. Since the yield variance is zero then the usage variance must be equal to the mix variance.
Thank you, I understand.Material usage variance = material mix variance, I misunderstand that mix variance before = mix variance after.
6y ago#3I can see why you thought that was what it was saying, but I hope it is clear now :-)
This topic is locked — no new replies.