Mix and Yield Variances with losses

There are always losses in mix and yield questions, otherwise there would be no yield variances!!! And yes, of course it is still examinable.

Losses are mentioned in the lectures (and I assume you have watched the free lectures – there is no point at all in using the lecture notes without watching the lectures that go with them, because it is in the lectures that I explain and expand on the lectures notes. If you are not watching the lectures for any reason, then you need to buy a Study Text from one of the ACCA approved publishers and study from that.).

In example 3, they should be produced 1 unit for every 3 kg of material. They actually used 15,200 kg of material and should therefore have produced 15,200 / 3 = 5,067 units. The actually produced only 5,000 units and therefore there were losses and therefore a yield variance.

For more examples watch my free lectures working through the following past exam questions: Q3 from the Sept/Dec 2015 hybrid exam, and Q5 from the December 2014 exam.
Both lectures are linked from this page:

https://opentuition.com/acca/f5/f5-revision-kit/