The following information is provided about three materials utilized in the production of a product: Material Standard Mix Standard Unit Price Standard Cost
X 1,250 units $3.00 per unit $3,750
Y 750 units 5.00 per unit $3,750
Z 500 units 4.00 per unit $2,000
Yield 2,250 units
During May, the following actual production information was provided:
Material Actual Mix
X 10,000 units
Y 5,000 units
Z 2,500 units
Yield 15,000 units
What is the Material yield variance.
A) $3,167(F)
B) $3,167(U)
C) $6,333(F)
D) $6,333(U)

Question

Quizplus · Accepted Answer

To calculate the material yield variance, we first need to calculate the standard quantity of materials for the actual production. 
Standard quantity of X = 10,000 units x 1,250 units = 12,500 units 
Standard quantity of Y = 5,000 units x 750 units = 3,750 units 
Standard quantity of Z = 2,500 units x 500 units = 1,250 units 
Total standard quantity = 17,500 units

Actual yield = 15,000 units 
Material yield variance = Standard cost - Actual cost 
Standard cost = $3,750 + $3,750 + $2,000 = $9,500 
Actual cost = (10,000 units x $3.00) + (5,000 units x $5.00) + (2,500 units x $4.00) = $55,000 
Material yield variance = $9,500 - $55,000 = $45,000 
Since the actual cost is higher than the standard cost, the material yield variance is unfavorable, resulting in a $3,167 (U) variance.

The Following Information Is Provided About Three Materials Utilized in the Production