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Hi Mike
The “130000kg actual production”, is this infact standard usage output for actual production?
..so standard usage input for actual production = 9/8 x 130000 = 146250kg
146250/9 = 16250 actual production units input
Apologies if my input/output terminology is a bit off
cheers
Hugh
Sorry John I had just so gotten used to starting a question with hi mike, doing f7 at the same time 🙁
Yes and no 🙂
The question says that the actual production is 130,000 kg.
So since on the standard cost card they should be using 9kg in total for production of 8kg, it means that the standard input for the actual production should have been 0/8 x 130,000 = 146,250 kg.
(the difference of 16,250 kg is not units – that is the standard number of kg that were expected to be lost.)
I don’t know whether you have watched the free lecture on mix and yield variances, but if not, then it should help you.
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