Fifth edition Alnoor Bhimani Charles T. Horngren Srikant M. Datar Madhav V. Rajan Farah Ahamed



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solutions-manual-to-bhimani-et-al-management-and-cost-accounting-pearson-2012-1
Solution Exhibit B
Columnar presentation of direct materials-yield and mix-variances for Markku Antero.



(Actual total quantity
of all inputs used
× Actual input mix)
× Budgeted prices (€)
(1)


(Actual total quantity
of all inputs used
× Budgeted input mix)
× Budgeted prices (€)
(2)
Flexible budget
(Budgeted total quantity of all
inputs allowed for actual
output achieved
× Budgeted input mix)
× Budgeted prices (€)
(3)
Tartarus 100,000
× ab Erebus 100,000
% c % 3.50 = 122,500
(100,000 % d) % 3.50 = 105,000
(93,750 % 0.3) % 3.50 = 98,437.50 Uranus 100,000
% e % 2.50 =
50,000 (100,000
% f) % 2.50 =
75,000 (93,750
% 0.3) % 2.50 = 70,312.50 All Fluids
€442,500
€420,000

€393,750.00
U U Total mix variance Total yield variance


€48,750 U

Total efficiency variance F = favourable effect on operating income U = unfavourable effect on operating income. Actual input mix Budgeted input mix aTartarus = 45,000 ÷ 100,000 = 45% bTartarus = 40 ÷ 100 = 40% cErebus = 35,000 ÷ 100,000 = 35% dErebus = 30 ÷ 100 = 30% eUranus = 20,000 ÷ 100,000 = 20% f Uranus = 30 ÷ 100 = 30%


Bhimani, Horngren, Datar and Rajan, Management and Cost Accounting, 5
th
Edition, Instructor’s Manual
© Pearson Education Limited 2012
17.18 Direct materials price and efficiency variances, direct materials yield and mix

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