Wisteria Corporation Produces a Product Using the Following Standard Proportions

question 46

Essay

Wisteria Corporation produces a product using the following standard proportions and costs of material:

	Pounds	Cost Per Pound	Amount
Material A	50	$5.00	$250
Material B	40	6.00	240
Material C	60	3.00	180
	150	4.4667	$670
Standard shrinkage (33 1/3%)	50
Net weight and cost	100	6.70	$670

A recent production run yielding 100 output pounds required an input of:

	Amount	Cost Per Pound
Material A	40	$5.15
Material B	50	6.00
Material C	65	2.80

Required:Material price,mix,and yield variances.

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Definitions:

Conservation of Volume

A cognitive ability in child development where the child understands that the volume of a substance remains constant even if its appearance changes.

Class Inclusion

A concept in cognitive development referring to the ability to understand that a category can include smaller subcategories.

Subclasses

Categories that fall under a larger class, often sharing many characteristics with the class but having distinctive features.

Reversible Thinking

The ability to recognize that actions or processes can be undone, leading to the original state or condition.