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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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