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crumbly cakes (6/09 amended)
For part c) of this question, when calculating the total planning variance, 60000 has been multiplied by $.302. How this figure of $.302 been calculated and what does it represent
Also, the question asks for calculating the total cost planning and operational variances. Is it the same thing as total material price planning and operational variances or is it different.
For part b) of this question, when calculating the material yield variance, should the total input figure of 23478 be used or the actual output figure of 21600 be used when calculating the standard mix for actual total and why.
Also when calculating the material yield variance, should the total input figure of .4 be used when calculating the standard mix for standard or budgeted total or the standard weight figure of .36 be used and why.
$0.302 is the original standard cost per cake. You know the standard quantities and the cost per kg for each of the ingredients, so if you total the cost of all the ingredients you have the cost per cake. The workings are printed at the start of the answer!!
For part (b) you must watch my free lectures because I explain what figures to use and explain why in my lectures. You cannot expect me to type out all of my lectures here 🙂