Problem 12: MIX AND YIELD VARIANCE BBB produced face powder. BBB has in its budget the following standard for one kilo of face powder: Standard QTY Ingredients Input Grams Standard Unit Standard Total Price cost 200 P3 P600 P2,800 P500 Y 700 Р4 100 Р5 Total 1,000 P3,900
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Required:
1. Total materials cost variance
2. Materials price variance
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