15.5 Mix And Yield Variances Flashcards
1
Q
The efficiency variance for either direct labor or materials can be divided into
A. Spending variance and yield variance
B. Yield variance and price variance
C. Volume variance and mix variance
D. Yield variance and mix variance
A
D. Yield variance and mix variance
A direct labor or materials efficiency variance is calculated by multiplying the difference between standard and actual usage times the standard and actual usage times the standard cost per unit of input. The efficiency variances can be divided into yield and mix variances. Mix and yield variances are calculated only when the production process involves combining several materials or classes of labor in varying proportions (when substitutions are allowable in combining resources).
