ACCA · Question 22 · Budgeting and control

Section B - Case 2: AeroLogix

AeroLogix provides drone-based medical delivery. Following from the previous data:
Standard mix for one batch: 6 kg Lithium ($40/kg) + 4 kg Cobalt ($90/kg) = 10 kg total input per batch.
Standard cost per batch = (6 * $40) + (4 * $90) = $240 + $360 = $600.
Standard average cost per kg of input = $600 / 10 kg = $60/kg.

In June, actual production was 100 batches. Total actual input was 1,000 kg (650 kg L + 350 kg C).

Calculate the total material yield variance for June. (Enter your answer as a positive number for adverse, or negative for favorable. Enter 0 if there is no variance).