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Malmuta Company uses a standard cost system. The stand cost card for one of its products shows the following materials standards: MATERIALS PONDS STANDARD PRICE
Malmuta Company uses a standard cost system. The stand cost card for one of its products shows the following materials standards: MATERIALS PONDS STANDARD PRICE PER POND AMOUNT A 20 .70 14 B 5 .40 2 C 25 .20 5 Total materials cost per unit 21 The standard 50 lb. mix cost per lb. is $ .42 ($21/50lbs.). The standard mix should product 40 lbs. of finished product, and the standard cost of finished product per lb. is $.525 ($21/40lbs.). Materials of 500,000 lbs. were used as follows: Material A 230,000 lbs. @$. Material B 50,000 @$.35 Material C 220,000 @$.25 The output of finished product was 390,000 lbs. Required: product analysis showing materials price, mix, and yield variances
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