What is the materials yield variance?
A)$1.12
B)$1.68
C)$3.00
D)$1.32

Question

Quizplus · Accepted Answer

The materials yield variance is calculated as (actual yield - expected yield) x standard cost per unit. Since the actual yield is less than the expected yield, the variance is unfavorable (adverse). Therefore, we need to deduct the variance from the expected cost to get the actual cost. The materials yield variance is $1.32 per unit, which means that the actual cost is $18.00 - $1.32 = $16.68 per unit. Option D is the closest to this actual cost.

What Is the Materials Yield Variance