Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / Direct materials efficiency variance mix and yield variances workingbackward. (30–40 minut...

Direct materials efficiency variance mix and yield variances workingbackward. (30–40 minutes Calypso SA manufactures and sells fertilisers Calypso uses the following standard

Di ect materials efficiency arian e, mix and yield arian es; orking backwa d.

(30–40 minutes)

Calypso SA manufactures and sells fertilisers. Calypso uses the following standard direct materials costs to produce 1 tonne of fertiliser:

 

75% of the input materials is Alpha at €400 per tonne €360

25% of the input materials is Gamma at €200 per tonne 60

–––––

otal standard cost of 1.2 tonnes of inputs € 420

–––––

 

Note that 1.2 tonnes of input quantities are required to produce 1 tonne of fertiliser. No stocks of direct materials are kept. Purchases are made as needed, so all price variances are related to direct materials used. Calypso produced 2000 tonnes of fertiliser in a particular period. The total direct materials yield variance for the period was €35 000 U. The actual input mix for the period was 50% of Alpha and 50% of Gamma.

 

1 Calculate the individual direct materials yield variances for the period.

2 Calculate the individual and total direct materials mix variances for the period.

3 Calculate the individual and total direct materials efficiency variances for the period.

4 Briefly describe the conclusions you would draw from the variance analyses.

Jun 19 2020 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions