SQSM

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October 21, 2021 at 4:16 pm #638725
AshleyMarc1997
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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 Kgs

Is 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?)
October 21, 2021 at 5:15 pm #638731
John Moffat
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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..
October 22, 2021 at 6:25 pm #638821
AshleyMarc1997
- Topics: 48
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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 units

SQSM = Standard mix * Total Actual units
October 23, 2021 at 10:11 am #638863
John Moffat
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But I show how to do it in my free lectures on mix and yield variances.
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