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Mix variance and yield variance

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Mix variance and yield variance

  • This topic has 1 reply, 2 voices, and was last updated 3 years ago by John Moffat.
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    Posts
  • September 5, 2021 at 6:09 pm #634490
    pinkyjovin123
    Participant
    • Topics: 92
    • Replies: 134
    • ☆☆☆

    Hello Sir,

    Question is as follows:

    To produce 19litres of Product X, a standard input mix of 8 litres of chemical A and 12 litre of chemical B is required.

    Chemical A has a standard cost of $20 per litre and chemical B has a standard cost of $25 per litre.

    During September, the actual results showed that 1850 litres of product X were produced ,using a total input of 900 litres of chemical A and 1100 litre of chemical B.

    The actual costs of chemicals A and B were at the standard cost of $20 and $25 per litre Respectively.

    Could you please show me total mix variance 2000 (Adv) for material A and yield variance 420 (Adv) for material A ?

    Std cost of actual litres
    $20* 900
    Material mix variance

    Std cost of total actual litres at std mix
    $20*900/2000*8
    Material yield variance

    Std cost of actual production
    8*£20*1850

    Using the above steps could you please tell me where I am going wrong ?

    Thanking you in advance

    September 5, 2021 at 8:20 pm #634512
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54696
    • ☆☆☆☆☆

    You need to follow the steps as explained in my free lectures on this 🙂

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