BelChely product is made by mixing and processing two chemicals, belly and chilly. The standard cost data are as follows: - 

                                     Chemical Standard proportions            Standard cost Sh. 

Per unit Belly                          60%                                                              500 

Chelly                                        40%                                                               750 

A standard process loss of 20% is anticipated; During a given week the output of this product was 4,250 units and the inputs were as follows: -

                                           Chemical Actual consumption              Actual price                      Actual cost 

Belly                                              3,250                                                      120                                  390,000 

Chelly                                             1,750                                                      140                                  245,000 

Required 

Calculate the following variances; 

(i) Material price variance 

(ii) Material mix variance 

(iii) Material yield variance

Answer rating: 100% (QA)

Calculate the variances i Material price variance Actual cost of Belly Actual consumption of Belly A... View the full answer