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

question 53

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
Calculate the Material mix variance.

• A)$1,500(U)
• B)$1,500(F)
• C)$1,250(U)
• D)$1,250(F)

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Definitions:

Catastrophic

describes an event causing sudden and extensive damage or suffering; often unforeseeable and with significant impact.

Reliability

The degree to which a system, component, or process consistently performs its intended function under specified conditions over time.

Function Properly

To function properly means to operate or perform as intended or expected, usually referring to machines, systems, or organs within living organisms.

System Reliability

The measure of a system's ability to perform its required functions under stated conditions for a specified period of time.