The Following Information Is Provided About Three Materials Utilized in the Production

question 35

Multiple Choice

The following information is provided about three materials utilized in the production of a product: $\begin{array} { l r r r } \text { Material } & \text { Standard Mix } & \text { Standard Unit Price } & \text { Standard Cost } \\ \mathrm { X } & 1,250 \text { units } & \$ 3.00 \text { per unit } & \$ 3,750 \\ \mathrm { Y } & 750 \text { units } & 5.00 \text { per unit } & \$ 3,750 \\ \mathrm { Z } & 500 \text { units } & 4.00 \text { per unit } & \$ 2,000 \\\\ \text {Yield }& 2,250 \text { units }\\\end{array}$

During May, the following actual production in formati on was provided:
$\begin{array} { l r } \underline {\text { Material }} & \underline { \text { Actual Mix } } \\ \mathrm { X } & 10,000 \text { units } \\ Y & 5,000 \text { units } \\ Z & 2,500 \text { units } \end{array}$ Yield 15,000 units
What is the Material yield variance.

• A)$3,167(F)
• B)$3,167(U)
• C)$6,333(F)
• D)$6,333(U)

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Definitions:

Operating Revenues

Revenues generated from a company's primary business activities.

Assets

Resources owned by a business that have economic value and are expected to provide future benefit.

Liabilities

Financial obligations or debts that a company owes to others, which must be paid back in the future.

Operating Income

A measure of a company's profit generated from its core business operations, excluding deductions of interest and taxes.