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The following cost information relates to product xy, which is manufactured in a continuous process from several different materials
Actual quantity of materials at standard price 19960
Actual quantity of materials at actual price 23120
Actual yield at standard material cost 20800
standard yield from actual input of materials at standard cost 19552
What is the favourable materials yield variance for the period?
The standard yield from standard input of materials at standard cost is not given, so how to calculate the materials yield variance from the above information
Also how to calculate the materials mix variance from the above informationThe actual yield at standard cost is $20,800.
The standard yield from the actual input at standard cost is $19,552.Therefore the mix variance is the difference of $1,248 (favourable)
Why the material mix variance is favourable. Should not it be adverse because the actual yield at standard cost is of 20800 is higher than the standard yield from the actual input at standard cost of 19552.
The standard yield from standard input of materials at standard cost is not given, so how to calculate the materials yield variance from the above informationThe actual yield is higher than the standard yield. Given that the standard yield assumes standard mix, and given they are both costed at standard cost. The difference must be the mix variance. and it is favourable because the actual is higher than the standard.
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