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Uganda Ltd. has the following standards for producing an alcoholic beverage: Every 100 litres of input should yield 80 litres of Chovi, the finished product. The production...

      

Uganda Ltd. has the following standards for producing an alcoholic beverage:
fig2485344.png
Every 100 litres of input should yield 80 litres of Chovi, the finished product.
The production manager is supposed to make the largest possible amount of finished
product for the least cost. He has some leeway to alter the combination of materials within
certain wide limits, as long as the finished product meets specified quality standards. Actual
results showed that 400,000 litres of Chovi were produced during last week. The raw
materials used in this production were 280,000 litres of 590N and 240,000 litres of KAG. No
price variances were experienced during the period.
Required:
a) A presentation of yield and mix variances.
b) Comment on the performance of the manager.

  

Answers


Kavungya
fig2585345.png
Kavungya answered the question on May 8, 2021 at 12:45


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