Problem - Huron Group had the following direct materials data for its product:
Standard costs for one unit of output
Material Twinkle 5 units of input at $ 50
Material Star 10 units of input at $ 65
During October, the company had the following results:
Units of output produced 2,100 units
Materials purchased and used
Material Twinkle 11,700 units at $ 47
Material Star 19,800 units at $ 67
Required:
(a) Compute materials price and efficiency variances.
(b) Compute materials mix and yield variances.