• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for March and June 2025 exams.
Get your discount code >>

material yield variance

Forums › ACCA Forums › ACCA PM Performance Management Forums › material yield variance

  • This topic has 3 replies, 2 voices, and was last updated 5 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • February 15, 2020 at 2:42 am #561889
    jayaswarya
    Member
    • Topics: 8
    • Replies: 4
    • ☆

    o produce 19 litres of product X, a standard input mix of 8 litres of chemical A and 12 litres of chemical B is required.

    Chemical A has a standard cost of $20 per litre and chemical B has a standard cost of $25 per litre.

    During September, the actual results showed that 1,850 litres of product X were produced, using a total input of 900 litres of chemical A and 1,100 litres of chemical B (2,000 litres in total).

    The actual costs of chemicals A and B were at the standard cost of $20 and $25 per litre respectively.

    It was expected that an actual input of 2,000 litres would yield an output of 1,900 litres (95%). The actual yield for September was only 1,850 litres, which was 50 litres less than expected.

    For the total materials mix variance and total materials yield variance, was there a favourable or adverse result in September?

    A. The total mix variance was adverse and the total yield variance was favourable
    B. The total mix variance was favourable and the total yield variance was adverse
    C. Both variances were adverse
    D. Both variances were favourable

    I Understand the mix variance but the yield variance the actual total input at std mix at std cost we use 2000 lt but how to find the std total input at std mix for actual output at std cost. It make me confuse everytime even in this question they use 1947 lt .can you help me with this .

    Thank you

    February 15, 2020 at 10:24 am #561927
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54665
    • ☆☆☆☆☆

    From the standard cost card, to get output of 19 litres they need to input 20 litres (8 + 12).

    Here, the actual output is 1,850 litres and therefore the would have expected to input
    20/19 x 1,850 = 1947 litres.

    However I am puzzled why the answer bothers calculating this because the question as you have typed it does not require any calculations.

    Have you watched my free lectures on mix and yield variances? The lectures are a complete free course for Paper PM and cover everything needed to be able to pass the exam well.

    February 16, 2020 at 2:07 am #561966
    jayaswarya
    Member
    • Topics: 8
    • Replies: 4
    • ☆

    Thank you sir

    February 16, 2020 at 11:10 am #561994
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54665
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘material yield variance’ is closed to new replies.

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • MikeLittle on Civil Law, Common Law, Criminal Law – ACCA Corporate and Business Law (LW) (ENG)
  • beata443c on Civil Law, Common Law, Criminal Law – ACCA Corporate and Business Law (LW) (ENG)
  • heary123@ on Group SFP – Unrealised profit and inventory in transit – ACCA Financial Reporting (FR)
  • heary123@ on Group SFP – Unrealised profit and inventory in transit – ACCA Financial Reporting (FR)
  • John Moffat on PM Chapter 15 Questions Financial Performance Measurement

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in