Question 3

Stacy, Inc., produces a product using a process that allows for substitution between two materials, Alpha and Beta. The company has the following direct materials data for its product: Standard costs for one unit of output Alpha Beta 48 units of input at 96 units of input at $ 9.00 $11.50 The company had the following results in June: Units of output produced 2,400 units Materials purchased and used Alpha Beta 123,200 units at 222,400 units at $ 8.70 $12.00 Required: a. Compute materials price and efficiency variances. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.) Materials price Efficiency variances Alpha Beta Total b. Compute materials mix and yield variances. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.) Alpha Materials mix Yield variances Beta Total