Standard Costing - 1 - Material Yield Variance - Reverse Calculation

Standard Costing - Variance Analysis - Material Yield Variance - Reverse Calculation
Answer to Quiz-3

Quiz/Problem:
A factory produces product-X by mixing 32 different raw materials. For the period under consideration, some of the material variances are as follows:
(i) Total Material Cost Variance (MCV) = RS. 10,000 (Adverse)
(ii) Total Material Price Variance (MPV) = Rs. 4,000 (Adverse)
(iii) Total Material Mix Variance (MMV) = Rs. 1,500 (Favorable)
What is the Material Yield Variance (MYV)?
(a) Rs. 6,000 (Adverse) (b) Rs. 4,500 (Adverse)
(c) Rs. 4,500 (Favourable) (d) Rs. 7,500 (Adverse)

The correct answer to this question is Rs. 7,500 (Adverse), which I have explained in brief in this lecture. Congratulation to those who answered this question correctly and those who cannot don't need to lose hope but just need to learn more carefully. Best of luck.

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Management Accounting, Costing, Standard Costing, Variance Analysis, Material, Cost Variance, Price Variance, Mix Variance, Yield Variance, MBA, MCA, CA, CS, CPA, CMA, CWA, BBA, BCA, BCom, MCom, GRE, GMAT, Grade 11, Grade 12, Class 11, Class 12, IAS, CAIIB, FIII, IBPS, BANK PO, UPSC

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Management Accounting,Costing,Standard Costing,Variance Analysis,Material,Cost Variance,Price Variance,Mix Variance,Yield Variance,MBA,MCA,CA,CS,CPA,CMA,CWA,BBA,BCA,BCom,MCom,GRE,GMAT,Grade 11,Grade 12,Class 11,Class 12,IAS,CAIIB,FIII,IBPS,BANK PO,UPSC,