I have studied variance analysis in my graduation using formulas :
Material Mix Variance : Standard cost for actual input - actual quantity at standard price
Material Yield Variance : Standard cost for actual output - Standard cost for actual input.
Using this formula when I do Lecture example-1 of BPP notes :
Ques- Brenda and Eddie are analysing the main ingredients to their basic pasta sauce.
The standard ingredients for one batch of tomato pasta sauce are:
$
Onions 5kg @ $2/kg 10
Tomatoes 5kg @ $4/kg 20
30
During June, 100 batches of sauce were prepared, using the following ingredients:
Onions 600 kg
Tomatoes 900 kg
For the total materials mix and total materials yield variance, was there a favourable or adverse result in June?
I get mix variance correct but yield variance incorrect.
Can you help me with my formula to solve this Question?
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Mix and Yield variance analysis-Lecture example -1 BPP notes
Thanks John, but I have figured out my answer.
I am pleased that you have sorted it out :-)
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