Discuss CIMA CIMAPRO19-P01-1 Exam Topic 8 Question 103

TP makes wedding cakes that are sold to specialist retail outlets which decorate the cakes according to the customers' specific requirements. The standard cost per unit of its most popular cake is as follows:

The general market prices at the time of purchase for Ingredient A and Ingredient B were $23 per kg and $20 per kg respectively. TP operates a JIT purchasing system for ingredients and a JIT production system; therefore, there was no inventory during the period.

What was the material yieldvariance?

AThe material yield variance was $98500 A

BThe material yield variance was $175500 A

CThe material yield variance was $155000 A

DThe material yield variance was $175 000 A

EThe material yield variance was $155500 A

Suggested Answer: D

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37 comments · newest first

Valentine 11 months ago

$155,000 A seems more realistic to me.

Sheldon 11 months ago

I agree with Ardella, $175,500 A makes sense!

Julio 11 months ago

Wait, how can it be that high? Sounds off.

Ardella 12 months ago

I think the yield variance is definitely $175,500 A.

Bobbie 12 months ago

The standard cost for Ingredient A is $23/kg.

India 12 months ago

I feel like I should have a better grasp on the JIT system's impact on variance calculations, but I’m a bit lost on the specifics right now.

Kris 1 year ago

This question reminds me of a similar practice one we did about variances. I think I might lean towards option C, but I’m not completely confident.

Xuan 1 year ago

I think the key is to compare the actual yield to the expected yield based on standard costs. I hope I can remember how to do that under pressure.

Orville 1 year ago

I remember we practiced calculating material yield variance, but I’m not sure if I got the formula right for this one.

Nobuko 1 year ago

Whew, this is a tricky one. I'm not totally confident in my ability to calculate material yield variance, but I'll give it my best shot. I'll need to make sure I understand the difference between actual and standard usage and costs, and then carefully work through the numbers. Hopefully I can get the right approach.

Pamella 1 year ago

Okay, I think I've got this. I'll need to find the actual material usage based on the production, then calculate the actual material cost using the market prices. Then I'll compare that to the standard material cost to get the variance. As long as I'm careful with the numbers, I should be able to get the right answer.

Jaime 1 year ago

This seems straightforward enough. I just need to calculate the actual material cost and compare it to the standard material cost to find the variance. The key will be making sure I use the correct quantities and prices in my calculations.

Joseph 1 year ago

Hmm, I'm a bit unsure about how to approach this. The information about the standard cost per unit and market prices for the ingredients is helpful, but I'm not sure how to use that to calculate the material yield variance. I may need to review my notes on this topic.

Gary 1 year ago

Okay, this looks like a standard material yield variance calculation question. I'll need to find the actual material usage and compare it to the standard material usage to determine the variance.

Bea 2 years ago

I bet the person who wrote this question has a real knead for detail.

Julian 2 years ago

Well, at least it's not a cake walk. Get it? Cake walk? Oh, never mind.

Whitley 2 years ago

Wait, is this a trick question? All the answers look pretty similar to me.

Bernardo 2 years ago

↳ replying to Whitley

D) The material yield variance was $175 000 A

Lavonne 2 years ago

↳ replying to Whitley

C) The material yield variance was $155000 A

Joseph 2 years ago

↳ replying to Whitley

B) The material yield variance was $175500 A

Tanja 2 years ago

↳ replying to Whitley

A) The material yield variance was $98500 A

Ena 2 years ago

Ah, a classic material yield variance problem. I'm feeling confident about this one.

Juan 2 years ago

↳ replying to Ena

I agree, that seems like the correct answer.

Franklyn 2 years ago

↳ replying to Ena

I think the material yield variance was $175500 A

Sheridan 2 years ago

I'm not sure, but I think the material yield variance was $175 000 A based on the market prices of the ingredients.

Hollis 2 years ago

Hmm, I'm not entirely sure about this one. The information provided seems a bit tricky to parse.

Jesus 2 years ago

↳ replying to Hollis

Actually, the correct answer is $155000 A

Shannon 2 years ago

↳ replying to Hollis

No, I believe the material yield variance was $175500 A

Sherron 2 years ago

↳ replying to Hollis

I agree, the material yield variance was $155000 A

Lili 2 years ago

↳ replying to Hollis

I think the material yield variance was $155000 A

Chaya 2 years ago

I believe it was $155000 A because the actual cost of ingredients was lower than the standard cost.

Frankie 2 years ago

This question looks pretty straightforward. I think the answer is B.

Meghann 2 years ago

↳ replying to Frankie

Great explanation, thanks for breaking it down!

Felix 2 years ago

↳ replying to Frankie

Exactly, in this case it would be ($23 + $20) * 8000 - $2,000,000 = $175,500

Francene 2 years ago

↳ replying to Frankie

That makes sense, the material yield variance is calculated by taking the standard cost of material used minus the actual cost of material used multiplied by the actual quantity used.

Maybelle 2 years ago

↳ replying to Frankie

I agree, the answer is B) The material yield variance was $175500 A

Pearlie 2 years ago

I think the material yield variance was $175500 A.

CIMAPRO19-P01-1 Exam - Topic 8 Question 103 Discussion