Khemicool Ltd. manufactures a chemical using in the process two components: K1 and component K2. The standard materials usage and cost of one unit of the ready chemical are:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Khemicool Ltd. manufactures a
chemical using in the process two
components: K1 and component K2.
The standard materials usage and cost
of one unit of the ready chemical are:
K1 5kg @ $2 $ 10
K2 10kg @ $3 $ 30
$40
In a particular period, 80 units of the
chemical were produced from 600 kg
of K1 and 900 kg of K2.
What was the company's materials mix
variance?
Transcribed Image Text:Khemicool Ltd. manufactures a chemical using in the process two components: K1 and component K2. The standard materials usage and cost of one unit of the ready chemical are: K1 5kg @ $2 $ 10 K2 10kg @ $3 $ 30 $40 In a particular period, 80 units of the chemical were produced from 600 kg of K1 and 900 kg of K2. What was the company's materials mix variance?
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