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

During April, the following actual production information was provided:

What is the materials usage variance?

ANS:  D

SUPPORTING CALCULATIONS:

Mix Variance

SM(X) = 3,500/5,000 ´ (30,000 +20,000) = 35,000

SM(Y) = 1,500/5,000 ´ (30,000 + 20,000) = 15,000

Yield Variance

STANDARD YIELD = (4,000/5,000) ´ 50,000 = 40,000

(40,000 – 36,000) ´ (\$8,000/4,000) = \$8,000 (U)

Regis Corporation uses two types of labor in the production of its product. Mixing and bottling have the following standards:

During April, the following actual production information was provided:

What is the labor efficiency variance?

ANS:  D

SUPPORTING CALCULATIONS:

Labor mix variance

SM(mixing) = (500/750) ´ (4,500 + 3,000) = 5,000

SM (Bottling) = (250/750) ´ (4,500 + 3,000) = 2,500

Labor yield variance:

Standard Yield = (4000/750) ´ 7500 = 40,000

(40,000 – 36,000) ´ (\$6,250/4,000) = \$6,250 (U)

PTS:   1                    OBJ:   9-5

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

During April, the following actual production information was provided:

What is the materials mix variance?

ANS:  B

SUPPORTING CALCULATIONS:

SM(X) = 3,500/5,000 ´ (30,000 +20,000) = 35,000

SM(Y) = 1,500/5,000 ´ (30,000 + 20,000) = 15,000

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

During April, the following actual production information was provided:

What is the materials yield variance?

ANS:  C

SUPPORTING CALCULATIONS:

STANDARD YIELD = (4,000/5,000) ´ 50,000 = 40,000

(40,000 – 36,000) ´ (\$8,000/4,000) = \$8,000 (U)

PTS:   1                    OBJ:   9-5

Regis Corporation uses two types of labor in the production of its product. Mixing and bottling have the following standards:

During April, the following actual production information was provided:

What is the labor mix variance?

ANS:  A

SUPPORTING CALCULATIONS:

SM(Mixing) = (500/750) ´ (4,500 + 3,000) = 5,000

SM (Bottling) = (250/750) ´ (4,500 + 3,000) = 2,500

What is the labor yield variance?

ANS:  C

SUPPORTING CALCULATIONS:

Standard Yield = (4,000/750) ´ 7,500 = 40,000

(40,000 – 36,000) ´ (\$6,250/4,000) = \$6,250 (U)