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Mix & Yield Variances

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Mix & Yield Variances

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • August 28, 2018 at 4:07 am #469737
    olawepoomo
    Member
    • Topics: 5
    • Replies: 12
    • ☆

    Please help me to understand the calculation of the SQSM in the question below:
    “To produce 19litres of product X, a std input mix of 8ltrs of A & 12ltrs of B is required. Std cost of A is $20/ltr; std cost of B id $25/ltr. During September, the actual results showed that 1,850 ltrs of X was produced using a total input of 900 ltrs of A & 1,100 ltrs of B. The actual costs for A & B remains the std costs $20 & $25, respectively.”

    Part of the solution has it that:
    Yield Variance
    Material SQSM AQSM DIFF STD COST VARIANCE
    A 779 900 100A 20 2000A
    B 1168 1200 100F 25 2500F
    1947 2000 1220A

    1850 ltrs of output should use 1947 ltrs of input (1850/0.95)

    August 28, 2018 at 9:49 am #469789
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54659
    • ☆☆☆☆☆

    How to calculate the variances is all explained, 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,

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • The topic ‘Mix & Yield Variances’ is closed to new replies.

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