Proctor has a policy of holding no inventories of any kind.Required:a. Compute materials price and efficiency variances.b. Compute materials mix and yield variances.Complete this question by entering your answers in the tabs below.Required ARequired BSavedCompute materials price and efficiency variances.Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" forunfavorable. If there is no effect, do not select either option.Materials price varianceMaterials efficiency varianceX-1Y-7Required ARequired B >Total< Prev3 of 8Next > Proctor Cleaning Products manufactures a product using a process that allows for substitution between two materials, X-1 and Y-7. Thecompany has the following direct materials data for its product:Standard costs for one unit of outputX-1Y-768 units of input at $1.0012 units of input at $4.60The following results were reported for January:Units of output producedMaterials purchasedX-1Y-718,000 units1,200,000 units at $1.02220,000 units at $4.55Proctor has a policy of holding no inventories of any kind.Required:a. Compute materials price and efficiency variances.b. Compute materials mix and yield variances.Complete this question by entering your answers in the tabs below.Required A Required BCompute materials price and efficiency variances.Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" forunfavorable. If there is no effect, do not select either option.AAN AW NEW< Prev3 of 8Next >

Name: Proctor has a policy of holding no inventories of any kind.Required:a
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Description: Proctor has a policy of holding no inventories of any kind.Required:a. Compute materials price and efficiency variances.b. Compute materials mix and yield variances.Complete this question by entering your answers in the tabs below.Required ARequired

Standard costing is one of the methods of costing which specializes in measuring the overall…

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Business

Accounting

Required: a. Compute materials price and efficiency variances. b. Compute materials mix and yield variances.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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Question

Proctor has a policy of holding no inventories of any kind.
Required:
a. Compute materials price and efficiency variances.
b. Compute materials mix and yield variances.
Complete this question by entering your answers in the tabs below.
Required A
Required B
Saved
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.
Materials price variance
Materials efficiency variance
X-1
Y-7
Required A
Required B >
Total
< Prev
3 of 8
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Proctor Cleaning Products manufactures a product using a process that allows for substitution between two materials, X-1 and Y-7. The
company has the following direct materials data for its product:
Standard costs for one unit of output
X-1
Y-7
68 units of input at $1.00
12 units of input at $4.60
The following results were reported for January:
Units of output produced
Materials purchased
X-1
Y-7
18,000 units
1,200,000 units at $1.02
220,000 units at $4.55
Proctor has a policy of holding no inventories of any kind.
Required:
a. Compute materials price and efficiency variances.
b. Compute materials mix and yield variances.
Complete this question by entering your answers in the tabs below.
Required A Required B
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.
AAN AW NEW
< Prev
3 of 8
Next >

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