- This topic has 3 replies, 2 voices, and was last updated 4 years ago by
.
- Posts
Hi Sir, I don’t understand the answer explanation and it is quite confusing to me. The question is:
The following cost information relates to product XY, which is produced in a continuous process from several different materials.
Actual quantity of materials at standard price $19,960
Actual quantity of materials at actual price $23,120
Actual yield at standard materials cost $20,800
Standard yield from actual input of materials at standard cost $19,552What is the favourable materials yield variance for the period?
The correct answer is $1,248.
Standard yield from actual input of materials at standard cost: $19,552
Actual yield at standard materials cost: $20,800
Mix variance (19,552-20800): $1,248 (F)If you have typed everything correctly, then it is confusing (and there is a typing error in the answer) because the question asks for the yield variance. The yield variance is indeed 1248(F) but against it written that it is the mix variance.
For the yield variance we do indeed compare the actual yield at std mix and std cost with the standard yield at std mix and std cost.
Have you watched my free lectures on mix and yield variances where this is explained?
I went back and checked my bpp revision kit. I didn’t type anything wrong though, then it is bpp typo. Guess that’s why I’m confused about it.
Yes, I have watched the free lectures.
Thank you for the explanation.
- The topic ‘MATERIAL YIELD VARIANCE (BPP QUESTION)’ is closed to new replies.