Question: I only have this attempt, please try to help TQ HGV Multi-Chemicals manufacture and sell a product called FMX from three raw materials namely H,

I only have this attempt, please try to help TQ

HGV Multi-Chemicals manufacture and sell a product called FMX from three raw materials namely H, G and V. FMX is budgeted to sell for RM88 per unit.

For the month of July, the standard input at the standard mix are:

kg Std Price (RM)

H 5,500 5.00

G 2,000 4.00

V 2,500 2.00

10,000

The actual input at the actual mix for the same month are:

kg Actual Price RM

H 5,200 4.00

G 2,200 4.20

V 2,600 2.50

10,000 litres

The expected standard loss in the production of the chemicals is 8%.

The actual loss in the production of the chemicals is 8.5%.

Required: Calculate the:

  1. Material price variance
  2. Standard cost of yield
  3. Material mix variance
  4. Material yield variance
  5. Material usage variance

(for each of the variances (a) to (e), your calculations should show the individual materials H, G, and V variances separately)

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