Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Iron Inc. manufactures fertilizers by mixing two chemicals, A and B. The standard cost information for 1 bag of fertilizer is given as follows: Material
Iron Inc. manufactures fertilizers by mixing two chemicals, A and B. The standard cost information for 1 bag of fertilizer is given as follows: Material A 3lb. @ $7 per pound Material B 7lb. @ $5 per pound For 2012, the firm produced 1,890 bags of fertilizer. It used 7,000 pounds of material A and 13,000 pounds of material B. The actual price of both A and B was $4.50 per pound.
Required: What is the materials yield variance for 2012? Unfavorable numbers should not be negative.
Hint: the materials mix variance is not the answer.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started