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The standard raw material requirement for a batch of Product A are as follows”
Material X 200 liters at RM7.40
Y 500 liters at RM2.80
Z 300 liters at RM3.90
A loss of volume occurs during processing and the standard yield is 810 litres of Product A per batchIn the period just ended, 21 batches were processed and the total output was 16,880 litres of Product A. Material in production in the period were:
Material X 4200 liters costing Rm30,870
Y 10,000 liters costing RM28,900
Z 6,800 liters costing RM25,940
Required:
(a) Calculate material mix and yield variances for each individual material
(b) Explain briefly how mix and yield variances arise during the production processMay I know how are we going to calculate for material yield for each material?
The best that I can do is calculate the total yield variances=
(21,000 litres X 810/1000)-16,880liters X ($4050/810)
=$650 AdvFirstly, why are you attempting questions for which you do not have an answer? You should be using a Revision Kit from one of the ACCA approved publishers. They are full of exam standard questions, together with answers and explanations.
Secondly, the calculations of mix and yield variances are explained in detail – with examples – in my free lectures.
The lectures are a complete free course for Paper PM and cover everything needed to be able to pass the exam well. You really cannot expect me to type out all my lectures here 🙂Hi sir,
Actually the question is asking for yield in total and I have the answer.
I just go and assume it and wondering if that is the case the question ask about yield in each material, it will be how to calculate?
Thanks
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