Question

In: Accounting

Stacy, Inc., produces a product using a process that allows for substitution between two materials, Alpha...

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 56 units of input at $ 5.00
Beta 112 units of input at $ 15.50

The company had the following results in June.

Units of output produced 2,800 units
Materials purchased and used
Alpha 164,800 units at $ 4.70
Beta 305,600 units at $ 15.90

Required:

a. Compute materials price and efficiency variances.

Alpha Beta Total
Materials price variance F U U
Materials efficiency variance U F F

b. Compute materials mix and yield variances.

Alpha Beta Total
Materials mix variance U F F
Materials yield variance

Solutions

Expert Solution

*Revised Standard Quantity is equal to standard quantity of actual output because total of actual qty. Is equal to the total of Standard Quantity For actual output .That's why RSQ is equal to standard quantity for Actual output


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