) Saskatoon Company Uses Two Raw Materials, a and B

question 108

Multiple Choice

) Saskatoon Company uses two raw materials, A and B, in the manufacture of its only product: Zizbo. The materials are very close substitutes. The standard proportions for the manufacture of a unit of Zizbo are 2 units of A and 3 units of B. The unit standard prices of A and B are $10 and $8, respectively. During the month of August, the company used 450 units of A and 750 units of B to produce 230 units of Zizbo.
- For raw material A,what were the mix and yield variances,respectively?

• A) $60 favourable and $440 unfavourable.
• B) $200 unfavourable and $300 favourable.
• C) $300 favourable and $200 unfavourable.
• D) $300 unfavourable and $200 favourable.

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Definitions:

Accommodation

Adjusting one's behavior or responses to suit another person's needs or preferences, often to maintain harmony in relationships.

Compromise

Conflict management style that attempts to find the middle ground in a conflict.

Coercive Power

is a form of authority or influence that is based on the ability to impose sanctions or punishments, often used in a context where obedience is compelled by fear of negative consequences.

Legitimate Power

A form of authority derived from a position of responsibility within an organizational hierarchy.