Question
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 54units of input at $12.00
Beta 108units of input at $14.50
The company had the following results in June:
Units of output produced 2,700 units
Materials purchased and used
Alpha 153,800units at $11.30
Beta 283,600units at $15.30
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.)
?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.)
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 units of input at units of 108 input at 54 $ 12 $ 14.5 $ $ 11.3 15.3 The company had the following results in June: Units of output produced 2,700 units Materials purchased and used Alpha 153,800 units at Beta 283,600 units at 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 F/U F/U F/U Efficiency Variance F/U F/U F/U 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 F/U F/U F/U Yield Variances F/U F/U F/U wo materials, Alpha alculations. nfavorable. If there tions. Indicate e. If there isStep by Step Solution
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