Page 276 - PM Integrated Workbook 2018-19
P. 276
Chapter 10
Material mix and yield variances
Material mix and yield variances are calculated if:
– A product contains more than one type of material
– These materials are interchangeable.
6.1 Overview
Total material variance
Material price variance Materials usage variance
Calculation
unchanged
Calculate a Material mix variance Material yield variance
separate variance
for each type of Measures the Measures the
material impact on profit of impact on profit of
a change in the a different output
mix of materials being produced
from a given input
than standard
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