Business, 19.07.2021 15:50 20jhutchinson
A company makes a product using two materials, one of which is interchangeable with a third material. The standards for producing one 200-pound batch are presented below. The last 200-pound batch was produced using 140 pounds of M and 120 pounds of O. The price of M was $0.33 per pound and the actual price of O was $0.40. The price of M was $0.03 per pound and the actual price of O was $0.10.
Material Standard Quantity (lbs) LBS StandardCost/lb. Total Cost
O 0 Â $0.40 Â $0.00 Â
H 110 Â 0.38 Â 41.80 Â
M 150 Â 0.32 Â 48.00 Â
260 Â 89.8
Is the material yield variance favorable or unfavorable? A) Favorable. B) Unfavorable.
Answers: 2
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A company makes a product using two materials, one of which is interchangeable with a third material...
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