Question
Ex. 9. XY Ltd. manufacturers of product P uses a standard cost system. Standard product and cost specifications for 1,000 kg. of product are as
Ex. 9. XY Ltd. manufacturers of product P uses a standard cost system. Standard product and cost specifications for 1,000 kg. of product are as follows: Ingredients Quantity Input Output B C Material records indicate: 800 200 200 1,200 1,000 Price per kg 2.50 4.00 1.00 Cost ( 2,000 800 200 3,000 2.50 per kg. 3.00 per kg. Consumption in January 1,57,000 kgs: at 2.40 A B 38,000 kgs: at 4.20 36,000 kgs: at 1.10 C Actual finished production for the month of january is 2,00,000 kgs. Calculate: (1) Material Price Variance (2) Material Mix Variance (3) Material Yield Variance
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