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)

---

Definitions:

Service Charge

A fee collected for the provision of a service, often added to the base cost of the service.

Credit Card

A payment card issued to users as a method of payment allowing the cardholder to pay for goods and services based on the holder's promise to pay for them.

Journal Entry

A record in the books of accounts that shows a business transaction and its effect on the company's finances.

Percent of Receivables Method

An accounting method used to estimate the amount of accounts receivable that will not be collected by calculating a percentage of receivables deemed uncollectible.