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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Mix and Yield variance
Ques – Mr. Green makes salads. The standard plate of salad has 30 g of lettuce (L), 50 g of peppers
(P) and 80 g of beetroot (B). The standard prices of the three ingredients are $0.2/kg,
0.4/kg and 0.8/kg respectively. The actual prices were $0.22/kg, $0.38/kg and $0.82/kg.
Mr. Green has been experimenting and so in July he changed the mix of vegetables on the
plate thus: 1,500 plates contained 62,000 grams of lettuce, 81,000 grams of peppers and
102,000 grams of beetroot.
a) What is the cost difference between the actual mix and the standard mix to the nearest
cent?
b) What is the yield variance (do not round your answer)?
Answer : a) $11.41
b) 2.8125 A
My answer : a) 11412.5
b) -2812.5
My question : Sir , my answer is very similar in numbers I am not sure why it is showing 11.41 and 2.8125 , like is there any point in the question which I am missing on ? because the method is same and the answer is same its the decimal places which are changed..
Thanks in advance 🙂
Remember that 30g of lettuce is 30/1,000 kg. There are 1,000 grams in a kilogram.
Please kill me …: D 😀 ..
Thank you sir..
You are welcome 🙂
