Answered step by step
Verified Expert Solution
Question
1 Approved Answer
XYZ Ltd is producing a 'standard mix' by using 60 kgs of material A and 40 kgs of material B. A standard loss of
XYZ Ltd is producing a 'standard mix' by using 60 kgs of material A and 40 kgs of material B. A standard loss of 30% is expected in the production. The standard price of A is 25 per kg and that of B 10 per kg. The actual mixture and yield were as follows: A 80 kgs @ 4.50 per kg B 70 kgs @ 8 per kg Actual yield is 115 kgs. You are required to calculate: (i) Material Cost Variance (ii) Material Price Variance (iii) Material Usage Variance (iv) Material Mix Variance (v) Material Yield Variance (20 marks)
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