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 22 units of input at $ 9.00
Beta 44 units of input at $ 17.50

The company had the following results in June.
Units of output produced 3,900 units
Materials purchased and used
Alpha 93,800 units at $ 8.70
Beta 163,600 units at $ 17.90

Required:

a. Compute materials price and efficiency variances.

b. Compute materials mix and yield variances

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