Answered step by step
Verified Expert Solution
Question
1 Approved Answer
. Question 2 Paco chemicals has one product, which requires input from three types of materials to produce batches of soap. Standard cost details for
.
Question 2
Paco chemicals has one product, which requires input from three types of materials to produce batches of soap. Standard cost details for a single batch are shown below:
Material type Standard quantity (kgs) Standard price per kg ($)
S1 8 0.30
S2 5 0.50
S3 3 0.40
A standard loss of 10% of unit is expected. Actual output was 15408 kgs for the previous week. Details of the material used were:
Material type Quantity (kgs)
S1 8,284
S2 7,535
S3 3,334
Required:
- Calculate the following material variances;
- Cost
- Price
- Mix
- Yield
- Explain three significance of analyzing material usage variance into material mix variance and material yield variance
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started