Duluth Castings Company makes a product, X Tol, from two materials, Ticon and VF. The standard prices and quantities are as follows:
|
|
Ticon |
VF |
|
Price per pound |
$12 |
$18 |
|
Pounds per unit of X Tol |
6 pounds |
3 pounds |
In May, Duluth produced 35,000 units of X Tol using the following actual prices and quantities of materials:
|
|
Ticon |
VF |
|
Price per pound |
$11.40 |
$16.80 |
|
Pounds purchased and used |
216,000 |
114,000 |
a. Compute materials price and efficiency variances.
b. Compute materials mix and yield variances.