Windward Chemicals produces a product using a process that allows for substitution between two materials, Sol-1 and Sol-2. The company has the following direct materials data for its product: Standard costs for one unit of output Sol-1 60 units of input at Sol-2 120 units of input at The company had the following results in June: Units of output produced 1,975 Materials purchased and used 132,450 237,000 Sol-1 Sol-2 $6.00 $9.00 Required: a. Compute materials price and efficiency variances. b. Compute materials mix and yield variances. Required A Required B units units at units at Complete this question by entering your answers in the tabs below. Materials price variance Materials efficiency variance Compute materials price and efficiency variances. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Sol-1 < Required A $5.70 $9.30 Sol-2 U U Required B > Total U U
Windward Chemicals produces a product using a process that allows for substitution between two materials, Sol-1 and Sol-2. The company has the following direct materials data for its product: Standard costs for one unit of output Sol-1 60 units of input at Sol-2 120 units of input at The company had the following results in June: Units of output produced 1,975 Materials purchased and used 132,450 237,000 Sol-1 Sol-2 $6.00 $9.00 Required: a. Compute materials price and efficiency variances. b. Compute materials mix and yield variances. Required A Required B units units at units at Complete this question by entering your answers in the tabs below. Materials price variance Materials efficiency variance Compute materials price and efficiency variances. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Sol-1 < Required A $5.70 $9.30 Sol-2 U U Required B > Total U U
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Windward Chemicals produces a product using a process that allows for substitution between two materials, Sol-1 and Sol-2. The
company has the following direct materials data for its product:
Standard costs for one unit of output
Sol-1
60
units of input at
Sol-2
120
units of input at
The company had the following results in June:
Units of output produced
1,975
Materials purchased and used
132,450
237,000
Sol-1
Sol-2
$6.00
$9.00
Required:
a. Compute materials price and efficiency variances.
b. Compute materials mix and yield variances.
Required A Required B
units
units at
units at
Complete this question by entering your answers in the tabs below.
Materials price variance
Materials efficiency variance
Compute materials price and efficiency variances.
Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for
unfavorable. If there is no effect, do not select either option.
Sol-1
< Required A
$5.70
$9.30
Sol-2
U
U
Required B >
Total
U
U
Transcribed Image Text:Complete this question by entering your answers in the tabs below.
Required A Required B
Compute materials mix and yield variances.
Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for
unfavorable. If there is no effect, do not select either option.
Materials mix variance
Materials yield variance
Sol-1
U
U
< Required A
Sol-2
Total
Required B >
F
U
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