Question 1

**Section B - Case 2: GreenYield Agri**

GreenYield Agri produces 'CropBoost', a specialized liquid fertilizer. The standard mix for 10,000 liters of input is:
- Chemical A: 6,000 liters at $10 per liter
- Chemical B: 4,000 liters at $15 per liter
Standard normal loss is 20% of input (so 10,000 liters input yields 8,000 liters of CropBoost).

In May, GreenYield inputted 10,000 liters in total, consisting of 7,000 liters of Chemical A and 3,000 liters of Chemical B. Actual yield was 7,600 liters of CropBoost.

Calculate the Material Yield Variance for May.

Accepted Answer

1. Find standard yield from actual inputs. 2. Compare to actual yield. 3. Multiply the difference by the standard cost per unit of output.

Question 2

What mistakes do candidates make on this ACCA question?

Accepted Answer

Multiplying the 400 liter difference by the average input cost ($12) instead of the standard output cost ($15).

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA PM — Performance Management Practice Exam 6

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