S1: In standard costing, the 'Material Mix Variance' arises when the actual mix of materials used differs from the standard mix. S2: If the actual mix is changed due to the unavailability of a specific material, the variance is calculated using the original standard mix. Which statement(s) is/are correct?
Explanation:
S1 is correct. S2 is incorrect because when the actual mix is altered due to unavailability, the Material Mix Variance must be calculated using the Revised Standard Mix, not the original standard mix.
No comments yet. Be the first to start the discussion!