87 750 117000 115200

$497 250

$500500 $492800

$ F $ U Total mix variance Total yield variance €4450 U Total efficiency variance the budgeted input mix (Golden

Delicious, 50%; British Coxes, 30%; Jonagold, 20%). Column also calculates costs using the budgeted input mix and the budgeted prices. The only difference in the two columns is that column 3 uses the budgeted total quantity of all inputs used (6400 tonnes, while column 2 uses the actual total quantity of all inputs used (tonnes. Hence, the difference in costs between the two columns is the total direct materials yield variance, due solely to differences in actual and budgeted total input quantity used. The total direct materials yield variance is the sum of the direct materials yield variances for each input Budgeted

total Budgeted BudgetedDirect materials yiled Actual total Quantity of all direct materials price of Variance for each input quantity of all direct materials x input mix x direct materials Direct materials inputs allowed percentage input Inputs used for actual output achieved Direct materials yield variance are Golden Delicious

(6500-6400)x0.50x$70=100x0.50x$70 =

U British Coxes (6500-6400)x0.30x$80=100X0.30x$80=

2400U

Jonagold

(6500-6400) x 0.20x$90=100x0.20x$90=

1800U Total direct materials yield variance U The total direct materials yield variance is unfavorable because Aliya uses 6500 tonnes of apples rather than the 6400 tonnes that it should have used to produce 4000 tonnes of cider.

Holding constant the budgeted mix and budgeted prices of apples, the budgeted cost per tonne of apples in the budgeted mix is $77 per tonne. The unfavorable yield variance represents the budgeted cost of using 100 more tonnes of apples (6500-6400) x $77 = $7700 U.

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