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MC Question 3
Product GX consists of a mix of three materials, J, K and L. The standard material cost of a unit of GX is as follows:
During March, 3,000 units of GX were produced, and actual usage was:
| $ | ||
|---|---|---|
| Material J | 5 kg at $4 per kg | 20 |
| Material K | 2 kg at $12 per kg | 24 |
| Material L | 3 kg at $8 per kg | 24 |
| Material J | 13,200 kg |
| Material K | 6,500 kg |
| Material L | 9,300 kg |
What was the materials yield variance for March?
A. $6,800 favourable
B. $6,800 adverse
C. $1,000 favourable
D. $1,000 adverse