MacDonald Limited MacDonald makes an industrial cleaning agent, which consists of a secret mix of three chemicals heated gently together; some loss of weight occurs during this process. Normally, the standard cost card details for the materials needed for 1 litre of the finished product is as follows: Chemical A 0.5 litres @ £8 per litre = £4.00 Chemical B 0.7 litres @ £5 per litre = £3.50 Chemical C 0.3 litres @ £7 per litre = £2.10 Total £9.60 In March, 8,000 litres of the cleaning agent were produced, and the following direct costs incurred: Chemical A 3,700 litres for £27,750 Chemical B 6,000 litres for £36,000 Chemical C 2,800 litres for £13,920 Calculate the material mix and yield variances.
MacDonald Limited
MacDonald makes an industrial cleaning agent, which consists of a secret mix of three chemicals heated gently together; some loss of weight occurs during this process. Normally, the
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Chemical A |
0.5 litres @ £8 per litre = |
£4.00 |
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Chemical B |
0.7 litres @ £5 per litre = |
£3.50 |
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Chemical C |
0.3 litres @ £7 per litre = |
£2.10 |
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Total |
£9.60 |
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In March, 8,000 litres of the cleaning agent were produced, and the following direct costs incurred:
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Chemical A |
3,700 litres for |
£27,750 |
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Chemical B |
6,000 litres for |
£36,000 |
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Chemical C |
2,800 litres for |
£13,920 |
Calculate the material mix and yield variances.
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