Hello Sir John Can you explain this to me.
Thanks
A company manufactures a fruit flavoured drink by mixing 2 liquids (A & J). The standard cost for
ten litres of the drink is shown below:
$
5 Litres of liquid A at $16 per litre 80
6 Litres of liquid J at $25 per litre 150
230
During August the company produced 4,800 litres of the drink. This was 200 litres below budgeted
production. The company purchased and used 2,200 litres of A for $18 per litre and 2,750 litres of
J for $21 per litre.
What is the material yield variance for August?
