Question
Iron Inc. manufactures fertilizer by mixing two chemicals, A and B. The standard cost of 1 bag of fertilizer is given as follows: Chemical A
Iron Inc. manufactures fertilizer by mixing two chemicals, A and B. The standard cost of 1 bag of fertilizer is given as follows:
Chemical A | 3 lbs | @ $5 per lb |
Chemical B | 7 lbs | @ $4 per lb |
For 2020, the firm produced 1,890 bags of fertilizer. It used 7,000 pounds of Chemical A and 13,000 pounds of Chemical B. The actual cost of both Chemicals A and B was $4 per pound. What is the materials yield variance for 2020?
Enter your answer without a dollar sign or commas, and round to the nearest dollar (if necessary). A favorable variance should be entered as a positive number (e.g, 100) and an unfavorable variance should be entered as a negative number (e.g. -100).
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