Stammer Company Uses Three Materials in the Production of Their

Essay

Stammer Company uses three materials in the production of their product. The materials, A, B, and C, have the following standards: $\begin{array} { l r r r } \text { Material } & \text { Standard Mix } & \text { Standard Unit Price } & \text { Standard Cost } \\ \text { A } & 5,000 \text { units } & \$ 2.00 \text { per unit } & \$ 10,000 \\ \text { B } & 3,000 \text { units } & 4.00 \text { per unit } & \$ 12,000 \\ \text { C } & 2,000 \text { units } & 3.00 \text { per unit } & \$ 6,000 \\\\\text { yield }&9,000 \text { units }\\\end{array}$

During April, the following actual production information was provided: $\begin{array}{lr}\text { Material } & \text { Actual Mix } \\\text { A } & 40,000 \text { units } \\\mathrm{B} & 20,000 \text { units } \\\mathrm{C} & 10,000 \text { units }\end{array}$
Yield 60,000 units
Required:
Calculate the materials usage, mix, and yield variances.