ABC Co makes product X by mixing together two ingredients, A and B. The standard cost...

ABC Co makes product X by mixing together two ingredients, A and B. The standard cost card for one unit of X is as follows:

Material	Kgs per unit	$ per kg	$ per unit
A	2	1.50	3.00
B	5	1.75	8.75
			11.75

The budgeted output for the March was 60 units. After one month of production, 50 units of X were produced from 110 kg of A and 225 kg of B.

1)Calculate the material mix variance

2)Calculate the materials usage variance.

3)Calculate the material yield variance

4)Which of the following factors would result in an adverse material usage variance in ABC Co?

(1) Using an inferior quality of material A or B

(2) Making changes to the production process

(3) Introducing increased quality controls resulting in more items of Product X being rejected.

Which of the following factors would result in a material mix variance in ABC Co?

An inferior quality of material A or B is used

The cost of materials A or B changes

The selling price of Product X changes

The production manager in Ash Co deviates from the standard mix

Solutions

Expert Solution

thank you....

ekkarill92 answered 1 year ago

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