Reference no: EM132611361

Malmuta Company uses a standard cost system. The stand cost card for one of its products shows the following materials standards:

MATERIALS            PONDS           STANDARD PRICE PER POND                    AMOUNT

A                             20                          .70                                            14

B                               5                          .40                                                2

C                                 25                            .20                                            5

Total materials cost per unit 21

The standard 50 lb. mix cost per lb. is $ .42 ($21/50lbs.). The standard mix should product 40 lbs. of finished product, and the standard cost of finished product per lb. is $.525 ($21/40lbs.).

Materials of 500,000 lbs. were used as follows:

Material A 230,000 lbs. @$. Material B 50,000 @$.35

Material C 220,000 @$.25

The output of finished product was 390,000 lbs.

Required:

Question 1: product analysis showing materials price, mix, and yield variances.