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The standard cost of a chemical mixture is as follows: 60% of Material A @ USD 50 per kg 40% of Material B @ USD
The standard cost of a chemical mixture is as follows:
60% of Material A @ USD 50 per kg
40% of Material B @ USD 60 per kg 3
A stand loss of 25% on output is expected in production. The cost records for a period has shown the following usage.
540 kg of Material A @ USD 60 per kg
260 kg of Material B @ USD 50 per kg
The quantity processed was 680 kgs of good product. From the above given information, calculate:
(i) Material Cost Variance
(ii) Material Price Variance
(iii) Material Efficiency Variance
(iv) Material Mix Variance
(v) Material Yield Variance
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