Materials Mix Variance  2. Materials Yield Variance

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 3E: Salisbury Bottle Company manufactures plastic two-liter bottles for the beverage industry. The cost...
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Bottlers Inc, a leading softdrinks company is producing their bottle requirements. For each case of 24 eight-ounce bottles, the company prescribed the following standard product mix:

Material A @ 2.4lb, P50/lbs

Material B @ 6lb, P22/lbs

Material C @ 1.6lb, P15/lb

During the month of August, 25,000 cases were produced from an input of:

Material Pounds Cost/lb
A 63,700 P49.00
B 125,200 20.50
C 48,100 16.00

Compute for the following: 

1. Materials Mix Variance 

2. Materials Yield Variance

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ISBN:
9781337912020
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Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub