8 2 Example Losses Mix And Yield Coope And Sorcerer Co Make Product T42 In A Continu 1770753
8.2 Example: Losses, mix and yield
Coope and Sorcerer Co make product T42 in a continuous process, for which standard and actual quantities in month 10 were as follows.
Standard
Actual
Price
Price
Std cost of
Quantity
per kg
Value
Quantity
per kg
actual usage
kg
$
$
kg
$
$
Material P
40,000
2.50
100,000
34,000
2.50
85,000
Material Q
20,000
4.00
80,000
22,000
4.00
88,000
60,000
180,000
56,000
173,000
Losses occur at an even rate during the processing operation and are expected to be 10% of materials input. Actual output during the month was 53,000 kgs.
Required
Calculate total usage, mix and yield variances.