San Francisco Corporation uses two materials in the production of its product. The materials, X and Y, have the following standards: $$\begin{array}{l}
\begin{array} { l r r r }
\text { Material } & \text { Standard Mix } & \text { Standard Unit Price } & \text { Standard Cost } \
\text { X } & 3,500 \text { units } & \$ 1.00 \text { per unit } & \$ 3,500 \
\text { Y } & 1,500 \text { units } & 3.00 \text { per unit } & \$ 4,500 \
\text { Yield } & 4,000 \text { units } & &
\end{array}\
\text { During April, the following actual production information was provided: }\
\begin{array} { l l }
\text { Material } & \text { Actual Mix } \
\hline \mathrm { Y } & 30,000 \text { units } \
\mathrm { Y } & 20,000 \text { units } \
\text { Yield } & 36,000 \text { units }
\end{array}
\end{array}$$ What is the materials yield variance?
A)$4,000 (F)
B)$4,000 (U)
C)$8,000 (F)
D)$8,000 (U)

Question

San Francisco Corporation uses two materials in the production of its product. The materials, X and Y, have the following standards: $$\begin{array}{l}
\begin{array} { l r r r } 
\text { Material } & \text { Standard Mix } & \text { Standard Unit Price } & \text { Standard Cost } \
\text { X } & 3,500 \text { units } & \$ 1.00 \text { per unit } & \$ 3,500 \
\text { Y } & 1,500 \text { units } & 3.00 \text { per unit } & \$ 4,500 \
\text { Yield } & 4,000 \text { units } & &
\end{array}\
\text { During April, the following actual production information was provided: }\
\begin{array} { l l } 
\text { Material } & \text { Actual Mix } \
\hline \mathrm { Y } & 30,000 \text { units } \
\mathrm { Y } & 20,000 \text { units } \
\text { Yield } & 36,000 \text { units }
\end{array}
\end{array}$$ What is the materials yield variance?
A)$4,000 (F)
B)$4,000 (U)
C)$8,000 (F)
D)$8,000 (U)

Quizplus · Accepted Answer

The materials yield variance is calculated as the difference between the standard cost of the actual output and the standard cost of the expected output based on the actual input. The standard mix for the actual input of 50,000 units (30,000 units of X + 20,000 units of Y) would be 35,000 units of X (70% of 50,000) and 15,000 units of Y (30% of 50,000), based on the original standard mix ratio. The standard cost for these quantities would be \$35,000 for X (35,000 units * \$1/unit) and \$45,000 for Y (15,000 units * \$3/unit), totaling \$80,000. However, the actual yield was 36,000 units, which at the standard cost (3,500 units of X at \$1/unit and 1,500 units of Y at \$3/unit for a total of 5,000 units) should cost \$3,500 + \$4,500 = \$8,000 for every 5,000 units. For 36,000 units, this scales to \$57,600 (\$8,000 * 7.2, since 36,000 units is 7.2 times the standard yield of 5,000 units). The variance is the difference between the standard cost of the expected output based on actual input (\$80,000) and the standard cost of the actual output (\$57,600), which is \$22,400 unfavorable. However, the provided options do not match this calculation, suggesting a mistake in the interpretation of the actual mix and yield data or in the calculation process. Given the options, none directly align with the calculated variance, indicating a need to reassess the calculation based on the provided options and information.

San Francisco Corporation Uses Two Materials in the Production of Its