San Francisco Corporation Uses Two Materials in the Production of Its

question 75

Multiple Choice

San Francisco Corporation uses two materials in the production of its product. The materials, X and Y, have the following standards: $$\begin{array}{l}\begin{array} { l r r r } \text { Material } & \text { Standard Mix } & \text { Standard Unit Price } & \text { Standard Cost } \\\text { X } & 3,500 \text { units } & \$ 1.00 \text { per unit } & \$ 3,500 \\\text { Y } & 1,500 \text { units } & 3.00 \text { per unit } & \$ 4,500 \\\text { Yield } & 4,000 \text { units } & &\end{array}\\\text { During April, the following actual production information was provided: }\\\begin{array} { l l } \text { Material } & \text { Actual Mix } \\\hline \mathrm { Y } & 30,000 \text { units } \\\mathrm { Y } & 20,000 \text { units } \\\text { Yield } & 36,000 \text { units }\end{array}\end{array}$$ What is the materials yield variance?

• A)$4,000 (F)
• B)$4,000 (U)
• C)$8,000 (F)
• D)$8,000 (U)

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