Chapter five measuring yield, mix and quantity effects learning Objectives

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• CHAPTER FIVE
• MEASURING YIELD, MIX AND QUANTITY EFFECTS
• INPUT VARIANCES
• DIRECT MATERIALS YIELD AND MIX VARIANCES
• Direct Materials Efficiency and Price Variances
• 0.80 (50% of 1.6) tone of Golden Delicious at \$70 per tone \$56.00
• 0.32 (20% of 1.6) tone of Jonagold at \$90 per tone 28.80
• 9250 tones of Golden Delicious at actual cost of \$70 per tone \$227 500
• 975 tones of Jonagold at actual cost of per tone 93600
• 6500 tones of apples 507 650
• Standard cost of 4000 tones of cider at €123.20 per tone 492800
• (1) (2) (3)
• Total direct materials yield variance
• Exhibit 17.2 total direct materials yield and mix variances for Aliya Ltd for June 2002
• Flexible budget
• (Budgeted total quantity
• Total direct materials mix variance
• Direct materials mix Actual Budgeted Actual total Budgeted
• input mix - input mix direct materials direct materials
• Golden Delicious (0.50 - 0.50) xxx x = \$0
• Jonagold (0.15 - 0.20) xxx x \$90 29250 F
• Grade 3 labour (5900 — 6000) xxx x \$24 = \$1200F
• Grade 1 labour (5900— 6000) xxx x \$12 = 180F
• Grade 1 labour (0.15 —0.15) xx Ox 5900 x \$12 = 0
• Revenue and sales variances
• First class \$3200 1000 5% \$3200000 \$2600 2400 10% \$6240000
• Economy class 900 16000 80% 14400000 700 15600 65% 10920000
• Total 20000 100% \$24800000 24000 100% \$26760000
• Static-budget variance
• Flexible-budget and sales-volume variances
• Sales-quantity variance
• Sales-mix variance
• Market-size and market-share variances
• Market-size Actual Budgeted Budgeted Budgeted average
• Market-share Actual Actual Budgeted Budgeted average
• Summary
• Assessment material
• EXERCISES
• Intermediate level
• Chemical Actual quantity Budgeted quantity Budgeted price
• __[___________________________________________________________
• REQUIRED
• The manager of the Lions was delighted that actual attendance was 10%
• REQUIRED
• 1. Calculate the sales-volume variance for individual product net revenues
• 6. Direct materials price and efficiency variances, direct materials yield and mix variances, food processing. (50 minutes)
• 7. Direct materials efficiency variance, mix and yield variances working backward. (30—40 minutes)
• 75% of the input materials is Alpha at \$400 per tonne \$360
• Total standard cost of 1.2 tonnes of inputs \$420
• REQUIRED
• 3 Calculate the individual and total direct materials efficiency variances for
• REQUIRED
• 2 Calculate the individual product and total sales-mix variances for June
• PART III
• Case study problems
• The Blank Division
• Question
• Question
• Fiddler Ltd