Compute for the Materials Mix Variance 2) Compute for the Materials Yield Variance
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
MARINA Bottlers Inc, a leading softdrinks company is producing their bottle requirements. For each case of 24 eight-ounce bottles, the company prescribed the following standard product mix:
Material A @ 2.4 lb, P50/Ibs; Material B @ 6 lb, P22/lbs and Material C @ 1.6 Ibs, P15/lb.
During the month of August, 25,000 cases were produced from an input of:
| Material | Pounds | Cost/Lb |
| A | 63,700 | 49.00 |
| B | 125,200 | 20.50 |
| C | 48,100 | 16.00 |
REQUIREMENTS: PLEASE SHOW YOUR SOLUTION IN GOOD ACCOUNTING FORM THANK YOU!
1) Compute for the Materials Mix Variance
2) Compute for the Materials Yield Variance
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