Regis Corporation Uses Two Materials in the Production of Its $\mathrm{X}$

question 60

Multiple Choice

Regis Corporation uses two materials in the production of its product. The materials, $\mathrm{X}$ and $\mathrm{Y}$ , have the following standards:

$\begin{array}{llll}\text { Material }& \text { Standard Mix } &\text { Standard Unit Price } & \text { Standard Cost }\\\mathrm{X} & 3,500 \text { units } & \$ 1.00 \text { per unit } & \$ 3,500 \\\mathrm{Y} & 1.500 \text { units } & 3.00 \text { per unit } & \$ 4.500\\\\\text { Yield }& 4,000 \text { units }\end{array}$


$\text { During April, the following actual production information was provided: }$
$\begin{array}{cl}\text { Material } & \text { Actual Mix } \\ \mathrm{X} & 30,000 \text { units } \\\mathrm{Y} & 20,000 \text { units } \\\\\text { Yield } & 36,000 \text { units }\end{array}$
-Refer to the figure.What is the labour efficiency variance?

• A)$2,500 (F)
• B)$3,750 (F)
• C)$3,750 (U)
• D)$6,250 (U)

Determine the effect of sales mix on a company's profitability and break-even analysis.

Understand the differences between variable costing and absorption costing and their impact on financial statements.

Apply principles of variable and fixed costs to solve for required sales to achieve targeted profits.

Analyze the effects of advertising and promotional activities on the break-even point and profitability.

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Definitions:

Output

The total amount of goods or services produced by a company, industry, or economic system.

Total Variable Costs

These are expenses that change in proportion to the activity of a business, such as costs for raw materials or production.

Output

The quantity of goods or services produced within a given period by a firm, industry, or economy.

Average Variable Costs

The total variable costs divided by the number of units produced, representing the variable cost per unit of output.