) Saskatoon Company Uses Two Raw Materials, a and B

question 58

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 B,what were the mix and yield variances,respectively?

• A) $60 favourable and $440 favourable.
• B) $240 favourable and $200 favourable.
• C) $240 unfavourable and $240 favourable.
• D) $240 unfavourable and $240 unfavourable.

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Definitions:

Reasonable Manner

Acting with fairness, caution, and prudence; often used in legal contexts to describe how a person should conduct themselves under certain circumstances.

Nonconforming Television Sets

Television sets that do not meet the regulatory standards or specifications set forth by governing bodies, often related to broadcast reception, energy consumption, or safety requirements.

Prompt Shipment

The swift dispatch of goods to the buyer immediately after the confirmation of an order.

Ambiguous Offer

An offer in a contract that is unclear and can be reasonably interpreted in more than one way.