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Question - Liquidsoap manufactures a product known as Supersanitiser by mixing two different chemicals. Supersanitiser is sold in 25 litre containers.
The standard material cost per container of Supersanitiser is as follow:
Chemical H 12 litres @ R2.50 = R30
Chemical W 18 litres @ R3.00 = R54
In May the actual mixed used was:
-984 litres of chemical H and
-1 230 litres of chemical W.
The actual output was 72 x 25l containers(1800 l) of Supersanitiser.
-Calculate the mix variances for materials R, and indicate if the variance was fabourable or unfavourable.
-Calculate the yield variance for material R, and indicate if the variance was fabourable or unfavourable.
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