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.
|
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b. Compute materials mix and yield variances.
|
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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
ekkarill92 answered 1 year agoRelated Solutions
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
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Standard costs for
one unit of output
Alpha
40
units of input
at
$
5.00
Beta
80
units of input at
$
7.50
The company had the following results in June:
Units of output
produced 2,000 units
Materials purchased
and used
Alpha
88,000
units at
$
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Beta
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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
38
units of input at
$
8.00
Beta
76
units of input at
$
9.50
The company had the following results in June.
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Materials purchased and used
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Stacy, Inc., produces a product using a process that allows for substitution between two materials, Alpha...
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24
units of input
at
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Beta
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$
16.50
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