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Hello Sir
I came across this question in the March Poll
required to calculate materials mix variance.
5 units of Product P requires:
Material A 3 kg at a cost 10$ = 30$
Material B 2 kg at a cost 15$ = 30$Actual production for the month was 100 units which used 120 kg materal in total costing 15000$.
Sir, for this if we use Usage = Material Mix + Material Yield, the Material Mix is coming to be 0.
Usage = (100-120)x12 = 240A
Yield = 240APlease let me know if this is correct approach.
Thank you!
The calculation you showed for usage is actually for yield.
Mix and usage cant be calculated since the actual mix of materials is not given.
Someone please confirm my answer!The yield variance is indeed 240 (A)
For the usage variance we would need to compare the standard cost of the actual purchases with the standard cost of the actual production. We know the standard cost of the actual production (100 x $12 = $1,200) but we do not know the standard cost of the actual purchases.
On the information that you have given it is not possible to calculate the mix variance. (And I do not know what you mean by ‘the March Poll’ 🙂
Sir, he means the forum where students post how their exams went.
Exactly, that’s what I thought as well, I tried calculating the mix variance but I couldn’t. The question isn’t complete .
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