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I’m having trouble solving this, please help:
The following information is given about standard and actual material costs during a production month:
Material: P, Q, R, S
Standard cost per kg: 3, 2.5, 4, 5.25
Actual cost per kg: 3.5, 2.75, 3.5, 5
Standard mix: 10%, 20%, 30%, 40%
Actual mix kg: 820, 1740, 2300, 2640What is the materials mix variance?
Why are you attempting a question for which you do not have an answer? You should be using a Revision Kit from one of the ACCA Approved Publishers – it has answers and explanations!
The total kgs used is 7,500 kgs.
The mix variance is the difference between the actual mix at standard cost, and the standard mix for the actual 7,500 kg at standard cost.
This is all explained in my free lectures on mix and yield variances. The lectures are a complete free course for Paper PM and cover everything needed to be able to pass the exam well.
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