Acadia Company uses standard costs to account for its production of ZIP. The standard cost of one unit is given below: Material A: 20.00 kilograms @ 1.00 = 20.00 Material B: 5.00 kilograms @ 2.40 = 12.00 Direct labour: 4.75 hours @ 15.00 = 71.25 Each material is added at the beginning of the process. Production data for June, 20X9, are as follows: a.Beginning work in progress, 15,000 units, 20% complete b.Started during the month, 37,000 c.Ending work in progress, 14,000 units, 75% complete d.Material A issued to production, 750,000 kilograms e.Material B issued to production, 184,000 kilograms f.Direct labour cost was 3,248,250 for 213,000 hours g.Assume that materials A and B are perfect substitutes.

Required: Use the Excel answer sheet provided (Image below)

a. What is the material mix variance for material A? For material B?

b.What is the material yield variance?

Question 2 DATA TABLE Standard inputs for one unit of ZIP: Quantity Units ka Material A Material B Total Material 1.00 2.40 kg kg Beginning WIP Ending WIP Started during June Units 15,000 14,000 37,000 kg of material A used in June kg of material B used in June 750,000 184,000 Equivalent units: To complete beginning WIP Started and completed in June Ending WIP Total units 23,000 14.000 37,000 Mix variance: Actual Quantity Actual quantity at std. mix Mix variance Std cost Material A Material B Yield variance: Standard Actual yield yield Standard cost per ZIP Yield Variance ZIP ZIP