PMYield Variance, Kaplan TYU 9 chapter 10

The standard total input to produce 1,000 units is 600 + 240 + 360 = 1,200 kg. Therefore for the actual output of 21,000 units, the input should have been 21,000 x 1,200/1,000 = 25,200 kg The actual total input was 25,000 kg. Compare the actual total input and the standard total input, both of them at standard mix and standard cost and the correct answer is $296 favourable. (Kaplan's answer has a rounding error, but that it not important for the exam)

But you have not done what I said in my previous reply!!! The actual input was 25,000 kg. At standard mix and standard cost, this would be: A: 25,000 x 600/1200 x $1.10 B: 25,000 x 240/1200 x $2.40 C: 25,000 x 360/1200 x $1.50 Total $37,000 Doing the same for the standard input of 25,200: A: 25,200 x 600/1200 x $1.10 B: 25,200 x 240/1200 x $2.40 C: 25,200 x 360/1200 x $1.50 Total $37,296 I think it would help you to watch the lectures again :-)

You are welcome :-)