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.
| 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 | $ | 4.50 | |
| Beta | 152,000 | units at | $ | 8.00 | |
Required: b. Compute materials mix and yield variances.
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