MIX

EXAMPLE 1
Hamba operates a standard costing system. The standard direct materials to produce 1000 units is as
follows
Material grade input (qty) Standard price per kg
Kg K
A 600 1.10
B 240 2.40
C 360 1.50

During the period the actual output of the product was 21,000 units. The actual material used to
production were :

A 14000 kg
B 5,500 kg
C 5,500 kg
Required
Calculate the material mix variances for each material and in total. Comment on the figures calculated.

EXAMPLE 2.

Tchengo Company manufactures a chemical “ Bombastic” using two compounds Bomba and Stic. The
standard material usage and cost of one unit of Bombastic are as follows
K
Bomba 10 kg at K4.00 40.00
Stic 20 kg at K6.00 120.00
160.00
In a particular period ,160 units of Bombastic were produced from 1600 kgs of Bomba and 1500 kgs of
Stic
Calculate the material mix
YIELD
EXAMPLE 3
Hamba operates a standard costing system. The standard direct materials to produce 1000 units is as
follows
Material grade input (qty) Standard price per kg
Kg K
A 600 1.10
B 240 2.40
C 360 1.50

During the period the actual output of the product was 21,000 units. The actual material used to
production were :

A 14000 kg
B 5,500 kg
C 5,500 kg
Required
Calculate the material mix yield for each material and in total.

EXAMPLE 4.

Tchengo Company manufactures a chemical “ Bombastic” using two compounds Bomba and Stic. The
standard material usage and cost of one unit of Bombastic are as follows
K
Bomba 10 kg at K4.00 40.00
Stic 20 kg at K6.00 120.00
160.00
In a particular period ,160 units of Bombastic were produced from 1600 kgs of Bomba and 1500 kgs of
Stic
Calculate the material mix
EXAMPLE 5
Pokopoko Chemicals has one product which requires input from three types of material to produce
batches of Simba. Standard cost details for a single batch are shown below
Material Typre standard qty standard price std cost /unit
Kg K K
D11 8 0.30 2.40
D12 5 0.50 2.50
D 16 3 0.40 1.20
6.10
A standard loss of 10% of input is expected. Actual output was 15,408 kg for the previous week. Details
of the material usage used were
D11 8284 kg
D12 7535 kg
D16 3334 kg
Calculate the individual material mix and yield and the total usage variance