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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Material mixed variance
Hi John,
for Crumbly Cakes in June 09 exam, I think the way to calculate the standard mix of actual use is funny, as it takes a simple average of the four ingredients. I wonder if it’s a default way for questions w/o standard cost card? I would never know if I didn’t read this question….
Thanks.
He has not taken an average.
In the cost card, each ingredient is 10/40 = 25% of the total quantity input.
So……you take that fraction of the actual total input to get the standard mix.
It just happens here that each ingredient is 25% of the total, but it could be any %.
PS YOu will always have a standard cost card, otherwise the question would be impossible.