Stammer Company Uses Three Materials in the Production of Their

question 18

Essay

Stammer Company uses three materials in the production of their product. The materials, A, B, and C, have the following standards:
Material Standard Mix Standard Unit Price Standard Cost
A 5,000 units $2.00 per unit $10,000
B 3,000 units 4.00 per unit $12,000
C 2,000 units 3.00 per unit $ 6,000
Yield 9,000 units
During April, the following actual production information was provided:
Material Actual Mix
A 40,000 units
B 20,000 units
C 10,000 units
Yield 60,000 units
Required:
Calculate the materials usage, mix, and yield variances.

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Definitions:

Target Market

A specific group of consumers at which a company aims its products and services.

Responsive

Reacting quickly and positively to changes or needs.

Happy Hour

A promotional event typically held in bars and restaurants offering discounted prices on drinks and sometimes food during specific hours.

Market Competitiveness

A measure of a company's ability to compete in a particular market based on factors such as price, product quality, and customer service.