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A company produces a product that requires two materials, Material A and Material B. Details of the material quantities and costs for August are given in the table below.
Budgeted and actual output of the product for August was 12,000 units.
The material mix variance for August is:
Suggested Answer: A
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12 comments · newest first
AU
Audra
12 months ago
I’m surprised it’s that high, thought it would be lower!
VE
Veda
12 months ago
Definitely looks like an adverse variance to me.
WI
Willodean
1 year ago
Wait, how can it be favourable with those numbers?
WI
William
1 year ago
I think it’s $1,540 Favourable, right?
LA
Lamonica
1 year ago
The material mix variance is crucial for understanding cost efficiency.
AN
Antonette
1 year ago
I’m a bit confused about whether to classify the variance as favorable or adverse. I wish I had reviewed that part more thoroughly.
CA
Casey
1 year ago
This question feels similar to one we did in class, where we had to analyze the cost differences. I hope I can recall the steps correctly.
FE
Felicia
1 year ago
I think the answer might be $1,540 favorable, but I need to double-check how we handled the actual vs. budgeted quantities.
TH
Thad
1 year ago
I remember we practiced calculating material mix variances, but I'm not sure if I got the formulas right for this one.
CA
Casie
1 year ago
Wait, I'm a bit confused. The options don't seem to match the values in the matrix. I'll need to double-check my understanding of sensitivity and how to calculate it from this data.
AH
Ahmed
1 year ago
I've got this one! The answer is A and D - anyone with write access to the planning unit, and the owner of the planning unit. Feels good to be confident on a question like this.
HE
Herminia
1 year ago
I'm pretty confident that B and C are correct, but I'm not sure about the other options. I'll make sure to read the question thoroughly before answering.