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Negota Limited is a manufacturing company listed on the Johannesburg Stock Exchange. It produces Maheu, a product that requires three ingredients: Aheu, Bota and Guyo. The company uses a standard costing system to monitor its costs. The budgeted information for August 2020 regarding the material cost for 85kg of Maheu is as follows: Material Kg Cost per kg R Aheu 34 1.70 Bota 51 4.25 Guyo 20 0.85 For the month of August 2020, Negota Limited managed to produce three thousand nine hundred and ten kilograms of Maheu. The following units below were used: Material Kg Cost per kg R Aheu 1 870 1.53 Bota 2 125 5.10 Guyo 782 0.85 Source: Hunde, T.(2020)
Required:
Question 1: Calculate the material usage, material mix and material yield variances for August 2020.
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