Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Material Variance

- This topic has 4 replies, 4 voices, and was last updated 2 years ago by John Moffat.

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- June 5, 2021 at 6:34 pm #623327
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!

June 6, 2021 at 3:00 am #623344The 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!June 6, 2021 at 10:03 am #623398The 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’ 🙂

June 6, 2021 at 10:55 am #623404Sir, 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 .June 6, 2021 at 4:15 pm #623463Ah, I see – thanks 🙂

That is the problem with people typing out questions from their exam because it is very hard to remember the question precisely after the exam.

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