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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
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 58 units of input at Beta 116 units of input at $6.00 $7.50 The company had the following results in June: Units of output produced 2,900 units Materials purchased and used Alpha 176,200 units at Beta 328,400 units at $5.20 $8.20 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.) Alpha Beta Total Materials price Efficiency variances 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 Beta Total Materials mix Yield variances
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