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	26	units of input at	$	7.00
Beta	52	units of input at	$	15.50

The company had the following results in June.


Units of output produced 3,700 units
Materials purchased and used
Alpha	104,200	units at	$	6.50
Beta	184,400	units at	$	16.20

Required:

a. Compute materials price and efficiency variances.

b. Compute materials mix and yield variances. Stacy, Inc., produces a product using a process that allows for substitution between two materials, Alpha and Beta. The company has the following direct

Compute materials price and efficiency variances. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.) Compute materials mix and yield variances. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)

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