1.

DM Variances

Standard per unit

lbs. $/lbs.
X 2 0.2
Y 1 0.3

Standard 10000 UNITS (Std Qty per unit x Budgeted Production)

lbs. $/lbs. Total
X 20000 0.2 4000
Y 10000 0.3 3000
7000
Actual 11200 UNITS
lbs. $/lbs. Total
X 24000 0.19 4560
Y 11000 0.32 3520
8080

Total DM Cost Variance -1080 UF

Flexible Budget 11200 Units (Std. Qty. per unit x Actual Production)
lbs. $/lbs. Total
X 22400 0.2 4480
Y 11200 0.3 3360
7840

Prod. Volume Variance = Budget for 12000- Flex. Budget for 13200
-840 UF
Flexible Budget Variance = Flex. Budget for 13200 - Actual Cost
-240 UF

Flexible Budget Variance = Price Var. + Usage Var.

DM Price Variance = (Std Price pu - Actual Piece pu) x Total Actual Qty Purchased
Std. Price Act. Price Act. Qty. Variance
X 0.2 0.19 24000 240 F
Y 0.3 0.32 11000 -220 UF
20 F

DM Usage Variance = (Total Std Qty - Total Actual Qty Used) x Std Price pu; Total Std Qty = Std Qty pu x Actual Prod. (
Std. Qty Ac. Qty Std Price Variance
X 22400 24000 0.2 -320 F
Y 11200 11000 0.3 60 F
-260 UF

DM Usage Variance = Mix Var. + Yield Var.

DM Mix Variance = (Actual Qty @ Std Mix - Actual Qty @ Actual Mix) x Std Price pu
Std Qty @ Act. Qty @Act. Qty @
 Std Mix Mix Ratio Std. Mix Act. Mix Std Price Variance
X 22400 0.666667 23333.33 24000 0.2 -133.3333 UF
Y 11200 0.333333 11666.67 11000 0.3 200 F
33600 35000 67 F

DM Yield Variance = (Std Qty @ Std Mix - Actual Qty @ Std Mix) x Std Price pu
Std Qty @ Act. Qty @
Std Mix Std. Mix Std Price Variance
X 22400 23333.33 0.2 -186.6667 UF
Y 11200 11666.67 0.3 -140 UF
-326.6667 UF

Summary Total Variance -1080 UF

Production volume variance -840 UF
Flexible Budget variance -240 F
(a) Price variance 20 F
(b) Usage variance -260 UF
(i) Mix Variance 67 F
(ii) Yield variance -327 UF
= Std Qty pu x Actual Prod. (Flex Budget)