Page 133 - P1 Integrated Workbook STUDENT 2018
P. 133
Advanced variance analysis
Material mix variance – individual units method
Powder Standard Actual Difference @ Standard Variance
mix mix price
Fine 160,650 163,800 3,150 A $0.05 $157.50 A
Harsh 53,550 50,400 3,150 F $0.01 $31.50 F
214,200 214,200 $126.00 A
Material mix variance – weighted average method
Material Standard Actual Difference Stnd price – Variance
mix mix WA price
Fine 160,650 163,800 3,150 A $0.01 $31.50 A
Harsh 53,550 50,400 3,150 F ($0.03) $94.50 A
214,200 214,200 $126.00 A
The weighted average price is $0.48/12 = $0.04
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