Problem 12: MIX AND YIELD VARIANCEBBB produced face powder. BBB has in its budget the following standard forone kilo of face powder:Standard QTYIngredientsInputGramsStandard UnitStandard TotalPricecost200P3P600P2,800P500Y700P4100Р5Total1,000P3,900 The company reported the following production and cost data for the 2020operations:Actual QTYIngredientsInputXGramsActual Unit PriceActual Total cost45,000125,00030,000200,000P4P180,000P375,000P180,000P735,000YP3P6TotalBBB produced 190 kilos of face powder in 2020:Required:1. Total materials cost variance2. Materials price variance3. Materials Mix variance

Name: Problem 12: MIX AND YIELD VARIANCEBBB produced face powder. BBB has i
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Description: Problem 12: MIX AND YIELD VARIANCEBBB produced face powder. BBB has in its budget the following standard forone kilo of face powder:Standard QTYIngredientsInputGramsStandard UnitStandard TotalPricecost200P3P600P2,800P500Y700P4100Р5Total1,000P3,900 T

Standard Data is given For 1 Kilo and Actual Data is available for 190 Kilo So we have to convert…

Answered: Required: 1. Total materials cost…

Business

Accounting

Required: 1. Total materials cost variance 2. Materials price variance 3. Materials Mix variance

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

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.

Topic Video

Question

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
P4
100
Р5
Total
1,000
P3,900

The company reported the following production and cost data for the 2020
operations:
Actual QTY
Ingredients
Input
X
Grams
Actual Unit Price
Actual Total cost
45,000
125,000
30,000
200,000
P4
P180,000
P375,000
P180,000
P735,000
Y
P3
P6
Total
BBB produced 190 kilos of face powder in 2020:
Required:
1. Total materials cost variance
2. Materials price variance
3. Materials Mix variance

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