- This topic has 3 replies, 2 voices, and was last updated 8 years ago by
.
- Posts
Standard plate of salad is made of 30g of lettuce , 50g of peppers and 80g of beetroot.the. the standard prices of the three ingredients are $0.2/kg, 0.4/kg and 0.8/kg respectively
The mix was recently changed , thus 1500 plates contained 62000g of lettuce 81000g of peppers and 102000g of beetroot.theI calculated the standard usage for standard mix total as 1500×160g=240000g, but did not the final answer for the yield Variance provided as $2.8125(A)
Please assist with this…thank you
The standard total usage for the actual output is 1500 x 160gm = 240,000 gm (240 kg)
The actual total usage = 62000+81000+102000 = 245,000 gm (245 gm).
You can then calculate the yield variance in either of two ways:
One way is to cost out both totals using standard mix and standard costs, and take the difference.
The other way is to cost out the difference in Kg at the average standard cost per kg.
(Both ways give the same answer).So doing it the second way, from the cost card, the total cost for 160 gms = (30 x 0.0002) + (50 x 0.0004) + (80 x 0.0008) = 0.09, so the average cost per kg = 1,000 x 0.09/160 = $0.5625
So the yield variance = (245,000 – 240,000) x $0.5625 = 2812.5
(Does your book only show the answer and not the workings?)
Thank you for your response as always!
The book showed the second method you used. I wanted to get round it using your layout in the lectures but I wasn’t successful.that was why I asked it here
- You must be logged in to reply to this topic.