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A $150 Adverse B $450 Adverse C $6,480 Favourable D $6,900 Favourable
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A $470 adverse B $400 adverse C $260 adverse D $195 adverse
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A $8,000 B $5,333 C $4,000 D $2,667
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A $2,292 Adverse B $1,845 Favourable C $200 Favourable D $50 Favourable
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8 .Magic Drinks makes a popular soft drink by mixing two ingredients – soda water and aspecial syrup. Soda water is inexpensive; the special syrup is expensive. The standard mixfor the drink is 80% soda water and 20% special syrup.During the recent financial period, the company recorded a favourable mix variance. Thefollowing statements have been made by managers regarding the favourable mix variance:(1) The costs of production during the period were lower than standard.(2) The quality of the product may be below standard.Which of the above statements is/are true?
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9 .Chemical X is made by combining two materials in a special process. It is normal for 10% ofthe volume of materials input to be lost during the process and this has been reflected in thestandard cost chemical X. In the most recent period, an adverse yield variance was recorded.What is the most likely cause of the adverse yield variance?
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A 1 only B 2 only C Neither 1 nor 2 D Both 1 and 2
