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Mix and Yield variances

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Mix and Yield variances

  • This topic has 1 reply, 2 voices, and was last updated 3 years ago by John Moffat.
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    Posts
  • October 18, 2021 at 3:41 pm #638315
    Natasha1996
    Participant
    • Topics: 41
    • Replies: 25
    • ☆☆

    I have four quick questions to ask you relating to mix & yield variances. I hope you won’t mind 🙂

    (1)
    Standard mix is calculated where we need to take the proportion of the Kg used on one product divided by the total kgs used on all products such as:

    Standard Mix = (Individual Std Kg / Total Std Kgs)

    (2)
    Actual Quantity Standard Mix (AQSM) is calculated such as:
    AQSM = (Standard Mix x Total Actual Kgs)

    (3)
    Standard Quantity Standard Mix (SQSM) is calculated such as:
    SQSM = (Standard Mix x Total Std Kgs)

    (4)
    Why do we use material Kgs instead of the material units produced in the calculations of mix & yield variances?

    Am I correct?

    October 18, 2021 at 4:44 pm #638324
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54665
    • ☆☆☆☆☆

    (1) Correct

    (2) Correct

    (3) Correct

    (4) Because it is changes in the total materials used and in the mix of the materials that are causing there to be variances in the first place.

    Have you watched my free lectures on mix and yield variances?

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