p. 250. 1. J.M. Fremgen, Accounting for Managerial Analysis, (Richard D. Irwin, Homewood, Illinois, 1976), 2. The assumption regarding this variance of MPV is that the quantity of raw material consumed is equal to the quantity of raw material purchased. 3. D.T. Decoster and E.L. Schafer, Management Accounting-A Decision Empabsis, John Wiley, New York, 1976), p. 480. 4. R.N. Anthony, Management Accounting, Text and Cases, (Irwin, Georgetown, 1970), pp. 534-53. 5. C.T. Horngren, Introduction to Management Accounting, (Prentice-Hall, Englewood Cliffs, N.J.. 1978), p. 193. 6. J. Batty, Standard Costing, Macdonald and Evans, London, 1970), p. 68. 7. Decoster and Schaffer, op. cit. p. 484. 8. National Association of Accountants, "Accounting for Costing of Capacity" NA.A. Research Report No. 39 (New York, 1963), p. 64. 9. While the term 'volume' variance is sometimes used interchangeably with 'capacity variance, it is more appropriate to consider capacity variance, as a part of volume variance. The latter approach is adopted by us. 10. Fremgen, op. cit., p. 265 j57 P.19.1 In a manufacturing process the following standards apply Standard price Raw material X @ 10 per kg Raw material Y @ 150 per kg Standard mix (by weight) 75% X, 25% Y Standard yield (Weight of product as percentage of weight of raw material, 90%) In a period, the actual costs, usages and output were as follows: Used: 4,400 kgs, X costing +46,500 1,600 kgs. Y costing 78,500 Output: 5,670 kgs of products The budget output for the period was 7,200 kgs. Prepare a statement, showing how the material cost variance is built up, and give activity and yield percentages