ECONOMICS

Detailed explanation-1: -Direct Material Yield Variance : It is that portion of the direct material usage variance which is the due to the difference between the standard yield specified and the actual yield obtained. ILLUSTRATION : The standard material cost for 100 kg of chemical D is made up of : Chemical A-30 kg.

Detailed explanation-2: -Cost per unit = (Electricity + Rent + Labor + Raw materials) / Number of units.

Detailed explanation-3: -The unit cost is the price incurred by a company to produce, store and sell one unit of a particular product. Unit costs include all fixed costs and all variable costs involved in production. Cost unit is a form of measurement of volume of production or service.

Detailed explanation-4: -The total product cost formula is Total Product Cost = Cost of Raw Materials + Cost of Direct Labor + Cost of Overhead. Another useful measure is the production cost per unit. This is calculated from the total production cost divided by the total number of units produced.