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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- September 5, 2021 at 6:09 pm #634490
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 varianceStd cost of total actual litres at std mix
$20*900/2000*8
Material yield varianceStd cost of actual production
8*£20*1850Using the above steps could you please tell me where I am going wrong ?
Thanking you in advance
September 5, 2021 at 8:20 pm #634512You need to follow the steps as explained in my free lectures on this 🙂
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