Material mixed variance — OpenTuition Forums

Aaccatobe16y ago

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.

John MoffatTutor16y ago#1

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 %.

John MoffatTutor16y ago#2

PS YOu will always have a standard cost card, otherwise the question would be impossible.