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Mix and Match Ltd uses a batch production method to produce its single product by combining two materials Tee and Pee. The company has budgeted
Mix and Match Ltd uses a batch production method to produce its single product by combining two materials Tee and Pee. The company has budgeted for a material mix ratio of 80:20 for Tee and Pee respectively. The following information relates to each batch: Direct material input 200kg Material Tee standard price 1.50 per kg 3.00 per kg Material Pee standard price The standard production specification states that a 90% yield of product is expected. The waste generated has no value. Actual results for month 10 were as follows: Output 1,890 kg Material Tee 1,140 kg 1,610 Material Pee 860 kg 2,780 There is no stock of raw material. Required: a) Calculate, for month 10, the following variances: Material price for each material and in total Material mix for each material and in total Material yield in total (12 Marks)
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