The Shum Company Makes a Product, Z, from Two Materials

question 136

Multiple Choice

The Shum Company makes a product, Z, from two materials: X and Y. The standard prices and quantities are as follows:
$\begin{array}{lrr} &\text { X } & \text {Y } \\ \text { Price per pound} &\$6&\$9\\ \text { Pounds per unit of product \( Z \) } &10&5\\\end{array}$

In May, 21,000 units of Z were produced by Shum Company, with the following actual prices and quantities of materials used:
$\begin{array}{lrr} &\text { X } & \text { Y } \\ \text { Price per pound } &\$5.70&\$8.40\\ \text { Pounds used } &216,000&114,000\\\end{array}$

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Is the total direct materials mix variance favorable or unfavorable?

• A) Favorable.
• B) Unfavorable.

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Definitions:

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Abilities required to perform movements and tasks involving coordination between the brain and the muscles.

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