Paix-Trolls SARL produces a petrol additive, Elysium, which increases engine efficiency and reduces petrol consumption. The actual

Question:

Paix-Trolls SARL produces a petrol additive, Elysium, which increases engine efficiency and reduces petrol consumption. The actual and budgeted quantities (in litres) of materials required to produce Elysium and the budgeted prices of materials in August 2018 are as follows:

Required

1. Calculate the total direct materials efficiency variance for August 2018.

2. Calculate the total direct materials yield and mix variances for August 2018.

3. What conclusions would you draw from the variance analysis?

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Management And Cost Accounting

ISBN: 9781292232669

7th Edition

Authors: Alnoor Bhimani, Srikant M. Datar, Charles T. Horngren, Madhav V. Rajan

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Question Posted: Oct 25, 2021 02:35 AM

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Paix-Trolls SARL produces a petrol additive, Elysium, which increases engine efficiency and reduces petrol consumption. The actual

Question:

Chemical Actual quantity Budgeted quantity Budgeted price Echol 24 080 25 200 €0.20 Protex 15 480 16 800 0.45 Benz 36 120 33 600 0.15 CT-40 10 320 8 400 0.30

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Answer 1 The total direct materials efficiency variance for August 2018 is 7936 This is calculated a...View the full answer

Management And Cost Accounting

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