Materials Mix and Yield Variances
Huron Group had the following direct materials data for its product:
|
Standard costs for one unit of output |
|
|
Material Twinkle |
20 units of input at $20 |
|
Material Star |
40 units of input at $30 |
During October, the company had the following results:
|
Units of output produced 2,000 units |
|
|
Materials purchased and used |
|
|
Material Twinkle |
44,000 units at $18 |
|
Material Star |
76,000 units at $32 |
Required
a. Compute materials price and efficiency variances.
b. Compute materials mix and yield variances.