Mix & Yield Variance

Hi John,

I have come across a question in my Kaplan book, i dont think it is a past paper question so i will copy below:

3 Mr. Green makes salads. The standard plate of salad has 30 g of lettuce (L), 50 g of peppers (P) and 80 g of beetroot (B). The standard prices of the three ingredients are $0.2/kg, 0.4/kg and 0.8/kg respectively.
Mr. Green has been experimenting and so in July he changed the mix of vegetables on the
plate thus: 1,500 plates contained 62,000 grams of lettuce, 81,000 grams of peppers and
102,000 grams of beetroot.

When it comes to working out the mix variance. My table looks the same as the answer for the actual mix and standard mix column however when it comes to multiplying it by Std. cost, that is where I am not sure. I multiplied the differences by 0.20, 0.40 and 0.80 for each vegetable.
The answer has multiplied by 0.0002, 0.0004 and 0.0008 and I’m not sure why. This may just be simple arithmetic that i should already know but its not obvious to me right now.

Also for the Yield Variance I have completed the usual table (like in your lecture). But i can see from the answers that Kaplan have done it a different way. Does it matter and will i get the same answer? I don’t have the right answer at the moment but that’s because of the issue with the Std. cost I think.

Here is the Kaplan answer for the Yield variance so you can see what i mean:

Actual Yield 1500.00
Std Yield 1531.25
Diff 31.25
Std cost 0.09
Yield var 2.8125 A