Materials mix variance, Cost Accounting

Materials mix variance:  It can be described as that portion of direct material usage variance which is the variation between the actual quantities of ingredients used in a mixture at standard price and the entire quantity of ingredients used at the weighted average price for each unit of ingredients as displayed by the standard cost sheet.

MMV = Standard Price (Standard Quantity - Actual Quantity)

(or) when standard is revised because of the shortage of a particular type of material

MMV = Standard Price (Revised Standard Quantity - Actual Quantity)

Where Revised standard quantity = Total weight of actual mix x Standard quantity

                                               Total weight of standard mix

Posted Date: 10/15/2012 7:26:08 AM | Location : United States







Related Discussions:- Materials mix variance, Assignment Help, Ask Question on Materials mix variance, Get Answer, Expert's Help, Materials mix variance Discussions

Write discussion on Materials mix variance
Your posts are moderated
Related Questions
Which statement best describes a sunk cost? A a cost which is irrelevant for the future B a cost which must be matched against the revenue C a cost which remains the same at all le


Estimate Fixed Overhead Variances Referring to data, we can estimate the fixed overhead variances as given below: Budget for December 2003;

Beaver Company (a multi-product firm) produces 5,000 units of Product X each year. Each unit of Product X sells for $8 and has a contribution margin of $5. If Product X is disconti

ADVANTAGES OF COST ACCOUNTING 1.         It helps in efficient decision making. 2.         It assists in cost drop. 3.         It is useful in obsession of selling price

Smith Corp. has determined that its contribution margin, (P - MC)/P, is 40%. A recent market research study found the following relationship between adverting outlays and sales rev

Chemical Recovery Company uses common machinery to manufacture two products.  Each year, the company has a total of four productions runs, which is two production runs for each pro

XYZ Co. manufactures automation machinery according to customer specifications.  The company is relatively new and has grown each year.  XYZ Co. operated at about 75% of practical

Account Analysis Method of Cost Estimation By Utilizing account analysis, the accountant classifies and examines each ledger account like variable mixed or fixed. Into their v