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Sir, I have a problem calculating Standard Quantity in Standard Mix (SQSM) in variances after watching your lecture
SQSM:
(Actual units x Std Kgs per unit)
or
(Individual Std Kgs per unit / Total Std Kgs per unit) x Total Std KgsIs it also correct that SQSM is actually Standard cost which is calculated by taking Actual units to multiply by the Std Kg per unit. (true?)
I do not use formula when calculating variances. It is dangerous simply to learn formulae because the examiner designs questions that check your understanding rather than whether you have learned a formula.
When calculating the mix variance we compare the actual mix with the standard mix for the actual total quantity, and cost both at the standard cost per kg..
Sir, I am not looking for the formula but I have no problem with the actual qty with standard mix but I have a problem with standard qty with standard mix in material yield variance.
Could you please tell me how to calculate standard qty with standard mix?
This is what I understand please correct me whether it is correct or not?
Standard mix is (Individual Kg / Total Std Kg) and standard qty is Total Actual unitsSQSM = Standard mix * Total Actual units
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