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.
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| Standard costs for one unit of output | |||||
| Alpha | 48 | units of input at | $ | 9.00 |
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| Beta | 96 | units of input at | $ | 11.50 |
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The company had the following results in June.
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| Units of output produced 2,400 units | |||||
| Materials purchased and used | |||||
| Alpha | 123,200 | units at | $ | 8.70 |
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| Beta | 222,400 | units at | $ | 12.00 |
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Required:
a. Compute materials price and efficiency variances.
b. Compute materials mix and yield variances.
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Fundamentals of Cost Accounting
Authors: William Lanen, Shannon Anderson, Michael Maher
5th edition
978-1259728877, 1259728870, 978-1259565403
