(Appendix 10A)Pictou Company Uses Two Raw Materials,X and Y,in the Manufacture

question 20

Essay

(Appendix 10A)Pictou Company uses two raw materials,X and Y,in the manufacture of its only product: Gizmo.Both materials are very close substitutes.The standard proportions for the manufacture of a unit of Gizmo are 6 units of X and 4 units of Y.The unit standard prices of X and Y are $16 and $20,respectively.During the month of August,the company used 3,000 units of X and 1,800 units of Y to produce 460 units of Gizmo.
Required:
a)Calculate the following variances for raw materials X and Y:
(i)Quantity variances.
(ii)Mix variances.
(iii)Yield variances
b)Suppose you are made aware that the assistant production manager recommended the departure from the standard mix.Should the assistant manager be commended? Explain

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Definitions:

Distortions

Alterations or misrepresentations of reality or information, often leading to inaccuracies in communication and perception.

Disruptive Behaviors

Actions that significantly impede the normal operations or activities in a workplace or learning environment.

Law of Effect

A principle suggesting that behaviors followed by positive outcomes are likely to be repeated, while those followed by negative outcomes are not.

OB Mod Strategies

Techniques drawn from operant conditioning to modify behavior in the organizational setting, focusing on reinforcement strategies to encourage desirable behaviors.