Stacy, Inc., produces a product using a process that allows substitution between two materials, Alpha and Beta.
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Question:
Stacy, Inc., produces a product using a process that allows substitution between two materials, Alpha and Beta. The company has the following direct materials data for its product:
Standard costs for a unit of production | |||||
Alfa | 56 | input units in | ps | 5.00 | |
Beta | 112 | input units in | ps | 15.50 | |
The company had the following results in June:
Production units produced 2,800 units | |||||
Purchased and used materials. | |||||
Alfa | 164.800 | units in | ps | 4.70 | |
Beta | 305,600 | units in | ps | 15.90 | |
Required:
a. Calculate the price of materials and efficiency variances. (Indicate the effect of each variation by selecting "F" for favorable or "U" for unfavorable.) .
b. Calculate material mix and performance variances. (Indicate the effect of each variation by selecting "F" for favorable or "U" for unfavorable.)
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-1259565403
5th edition
Authors: William Lanen, Shannon Anderson, Michael Maher
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