Question: Please help with this problem Stearn and Company makes a lubricating oll using two grades of petroleum ( Alpha and Beta ) . Within certain
Please help with this problem Stearn and Company makes a lubricating oll using two grades of petroleum Alpha and Beta Within certain limits the two grades can substitute for one another, so the actual mix of inputs often differs from the standard mix. Stearn holds no materlals inventorles. The standard cost of a unit of output follows.
A total of units were produced during February. The actual Inputs purchased and used during February were as follows:
Required:
Prepare a complete materials varlance analysis showing the materials price varlance, the materlals efficlency varlance, the materials mlx varlance, and the materlals yleld varlance.
Note: Do not round Intermedlate calculations. Indlcate the effect of each varlance by selecting F for favorable, or U for unfavorable. If there is no effect, do not select elther option.
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