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Home / Questions / Di r ect materials efficiency, yield and mix v arian c es Paix-Trolls SARL produces a petr...

Di r ect materials efficiency, yield and mix v arian c es Paix-Trolls SARL produces a petrol additive Elysium that increases engine efficiency and reduces petrol consumption

Di ect materials efficiency, yield and mix arian es.

Paix-Trolls SARL produces a petrol additive, Elysium, that increases engine efficiency and reduces petrol consumption. The actual and budgeted quantities (in litres) of materials required to produce Elysium and the budgeted prices of materials in August 2008 are as follows:

 

Chemical

Actual quantity

Budgeted quantity

Budgeted price

 

Echol

 

24 080

 

25 200

 

€0.20

Protex

15 480

16 800

0.45

Benz

36 120

33 600

0.15

CT-40

10 320

8 400

0.30

Required

 

 

 

1 Calculate the total direct materials efficiency variance for August 2008.

2 Calculate the total direct materials yield and mix variances for August 2008.

3 What conclusions would you draw from the variance analysis?

Jun 19 2020 View more View Less

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