Question
Stronghold Corporation uses two materials, P and Q, to manufacture a product. The following standards are provided: Materials P Q Standard Mix 55 units
Stronghold Corporation uses two materials, P and Q, to manufacture a product. The following standards are provided: Materials P Q Standard Mix 55 units 45 units Standard unit price $2 $5 Standard cost $110 $225 Yield 68 units During the month of November, the following actual production information was provided: Materials P Q Yield Actual Mix 3,000 units 2,000 units 3,000 units Required: (1) Without computing the yield variance, please explain whether the yield variance is favorable or unfavorable.
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