The Shum Company makes a product, Z, from two materials: X and Y. The standard prices and quantities are as follows: X Y $6 $9 Price per pound Pounds per unit of product Z 10 5 In May, 21,800 units of Z were produced by Shum Company, with the following actual prices and quantities of materials used:

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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The Shum Company makes a product, Z, from two materials: X and Y. The standard
prices and quantities are as follows:
Y
Price per pound
$6 $9
Pounds per unit of product Z 10
5
In May, 21,800 units of Z were produced by Shum Company, with the following actual
prices and quantities of materials used:
Y
Price per pound $ 5.70
$ 8.40
Pounds used
210,000
186,000
Is the total direct material yield variance favorable or unfavorable?
Favorable.
Unfavorable.
Transcribed Image Text:The Shum Company makes a product, Z, from two materials: X and Y. The standard prices and quantities are as follows: Y Price per pound $6 $9 Pounds per unit of product Z 10 5 In May, 21,800 units of Z were produced by Shum Company, with the following actual prices and quantities of materials used: Y Price per pound $ 5.70 $ 8.40 Pounds used 210,000 186,000 Is the total direct material yield variance favorable or unfavorable? Favorable. Unfavorable.
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