PMyield variance

correct me if im wrong, but im going to try and answer it for you!

0.360*60000 = 21600kg to produce 60000 (std)
actual = 23478kg to produce 60000

so you get actual figures of 23478 and deduct 21600 which equals 1878 then multiply by std cost of .302 which equals 567 favourable

i think that is right, normal loss is ignored (i think).

i tried to help, if im wrong, then its going to be with the normal loss!

if the normal loss is deducted, then its 23478 - 21600 - 2160 x 0.302 = 85.16 adverse

i hope the first answer is correct as i have just sat and learnt it!

Refer to willynwilson, 21600kg is the standard usage before standard loss of 10%, this mean that they know there will be standard loss of 10% and therefore they will allow for it, 21600kg will be 90%, adjusted standard usage = 21600 x 100/90 = 24000kg.

Then (24000 - 23478) x $0.302 = $157.644 favourable, lesser amount of quantity is used resulting in a favourable yield variance :)

but answer is 394 F

0.36 grams per unit is after loss. Before loss was subtracted the standard was 0.4 gram per unit.

Actual

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60000 Units
Standard( 23478 / 0.4 ) 58695 units
Difference

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1305 units

Yield Variance is 1305*0.302= 394 F. This is the Answer.

Sorry I used kg rather than units,lol yes smmysterious is right, 0.36kg per unit is 90%, 100% is 0.4kg per unit.