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John,
I am confused between two past exam questions: Kappa Co (Sep 2018) and Crumbly Cakes (June 2009).
I fully understand crumbly cakes approach but I don’t get the correct answer for yield variance when I use the same principle for Kappa.
To calculate the total yield variance for Kappa, I assumed 4600 is the actual output after material loss of 20%. Therefore the standard input (ie standard quantity at standard mix) would be: 4600*100/80 = 5750. Instead answer is 5520.
Is it because there is no material loss in Kappa? Although the question clearly says there is material loss – standard input is 120 kg and output is 100 kg.Please help.
Many thanks!I think I know where I went wrong – didn’t read the Kappa question carefully and mixed up the input kgs and the 100kg of Omega. From the way I understand now, there is no material waste. Standard input in total is 120 kgs per unit and ‘100 kg of Omega’ is to be treated as 1 unit like it would be in any other standard question.
Is that correct?
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