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Category > Management Posted 20 Feb 2018 My Price 6.00

Coope and Sorcerer Co

8.2  Example: Losses, mix and  yield

Coope and Sorcerer Co make product T42 in a continuous process, for which standard and actual quantities in month 10 were as follows.

 

Standard

 

 

 

Actual

 

Price

 

 

 

Price

Std cost of

 

Quantity

per kg

Value

 

Quantity

per kg

actual usage

 

kg

$

$

 

kg

$

$

Material P

40,000

2.50

100,000

 

34,000

2.50

85,000

Material Q

 20,000

4.00

   80,000

 

 22,000

4.00

   88,000

 

60,000

 

180,000

 

56,000

 

173,000

 

Losses occur at an even rate during the processing operation and are expected to be 10% of materials input. Actual output during the month was 53,000 kgs.

Required

Calculate total usage, mix and yield variances.

Answers

Maurice Tutor
(5)
Status NEW Posted 20 Feb 2018 06:02 PM My Price 6.00

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